Washington (TDI): On the sidelines of the World Bank–IMF Spring Meetings, Pakistan’s Federal Minister for Finance and Revenue, Muhammad Aurangzeb, held a meeting with Masato Kanda, President of the Asian Development Bank.
Aurangzeb described the recently signed Country Partnership Strategy (CPS) as a “milestone” in strengthening bilateral ties. The agreement is expected to guide development financing and policy support across key sectors in Pakistan.
He also expressed appreciation for ADB’s role in providing credit enhancement for Pakistan’s inaugural Panda Bond issuance, a move aimed at diversifying funding sources through China’s domestic bond market.
The minister briefed Kanda on Pakistan’s ongoing engagement with the International Monetary Fund, particularly the successful staff-level agreement on the third review under the Extended Fund Facility (EFF) and the second review under the Resilience and Sustainability Facility (RSF).
Aurangzeb conveyed optimism that the IMF Executive Board would endorse the review, unlocking further financial support at a critical time for the country’s economy.
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Addressing current economic challenges, Aurangzeb characterized the situation as a major supply-side shock. He outlined the government’s response, which includes ensuring fuel availability, adjusting pricing mechanisms, improving logistics, and implementing targeted subsidies to protect vulnerable segments.
Demand-side management strategies are also being deployed to stabilize consumption patterns. He added that the government, in coordination with the State Bank of Pakistan, is closely assessing potential second- and third-order economic impacts.
Kanda, for his part, raised concerns about disruptions in fertilizer supply chains, warning of possible adverse effects on agricultural output; an essential pillar of Pakistan’s economy.
He also highlighted the risks posed by ongoing volatility in global financial markets, which could further complicate Pakistan’s economic recovery.
In a gesture signaling continued engagement, Aurangzeb extended an invitation, on behalf of the Prime Minister, for Kanda to visit Pakistan.
The proposed visit is expected to further solidify collaboration and explore new avenues of support amid evolving economic challenges.
