Finance Minister Muhammad Aurangzeb is set to raise the issue of rescheduling Pakistan’s guaranteed debt with his Chinese counterpart, Lan Fo’an, during a meeting in Washington next week. The discussion will take place on the sidelines of the International Monetary Fund (IMF) spring meetings.
According to official sources, Aurangzeb will also meet with IMF Managing Director Kristalina Georgieva and U.S. Assistant Secretary of the Treasury for International Finance, Robert Kaproth.
During his six-day visit, Aurangzeb’s meeting with China’s finance minister will focus on Pakistan’s request to delay repayment of $3.4 billion in debt for two years to address a foreign financing shortfall. Senior finance officials, including Finance Secretary Imdad Ullah Bosal, State Bank Governor Jameel Ahmad, and Economic Affairs Secretary Kazim Niaz, will accompany Aurangzeb on the trip.
The request to China’s Exim Bank to restructure loans was initially made by Deputy Prime Minister Ishaq Dar during a previous visit to Beijing. A formal letter was also sent last year by the finance minister. Despite these efforts, the request remains pending.
This initiative follows Pakistan’s recent $1.3 billion repayment of Chinese commercial loans, including $300 million paid just this week. Discussions for refinancing this debt are ongoing. However, the government is also weighing whether it needs to renew the loan, especially after a surprising $1 billion surge in remittances in March, which totaled $4.1 billion.
Aurangzeb is also scheduled to meet Saudi Arabia’s Finance Minister, Mohammed Aljadaan.
Unlike previous years when high-level U.S. officials met Pakistani delegates, this time, the highest confirmed U.S. engagement is with Assistant Secretary Kaproth. Still, recent weeks have seen increased U.S.-Pakistan interactions, including phone calls between top U.S. officials and Pakistan’s deputy prime minister.
Aurangzeb is also expected to meet James C. Cruse, Acting President of the U.S. Exim Bank. The bank has shown interest in offering around $1 billion in financing for the Reko Diq copper and gold mining project. However, it has requested preferential creditor status—a condition Islamabad has previously declined.
Last month, Pakistan revised the cost of the Reko Diq project’s first phase to $6.8 billion, a 58% increase due to higher costs and an expanded scope. Of this, $3 billion is expected to be financed through debt, with the World Bank Group likely to contribute $300 million. The remaining $3.7 billion will come from shareholder equity.
Aurangzeb is also scheduled to meet with officials from the U.S. International Development Finance Corporation (IDFC) to explore support for Pakistan’s privatization plans.
Additionally, he will meet key IMF officials, including Assistant Director Nikolay Gueorguiev, Deputy Managing Director Nigel Clarke, and Middle East and Central Asia Director Jihad Azour, to review progress on the $7 billion IMF programme. Pakistan and the IMF reached a staff-level agreement last month for a $1 billion tranche, but a formal board meeting to approve it is still pending.
Aurangzeb will also participate in an IMF panel discussion on Pakistan’s medium-term revenue strategy. So far, tax reform efforts have mostly impacted salaried workers, while efforts to tax traders have struggled. While provinces have passed new agricultural income tax laws under IMF conditions, these are not yet being enforced.
Other scheduled meetings include discussions with Asian Development Bank President Masato Kanda, World Bank President Ajay Banga, and World Bank Vice President for South Asia, Martin Raiser.
During the IMF spring meetings, Aurangzeb will also attend a special briefing for the embassies of the Climate Vulnerable Forum (V20 Club). He will meet with Mohamed Nasheed, the Forum’s Secretary General. The V20 includes 68 countries vulnerable to climate change, advocating for climate finance, disaster resilience, and sustainable development.
Aurangzeb will also participate in a session of the Coalition of Finance Ministers for Climate Action (CFMCA).
Finally, he will speak at the Atlantic Council about Pakistan’s economic outlook through 2025 and beyond. He will also brief international investors—invited by Jefferies International—on economic trends, fiscal policy, and IMF-related reforms. A meeting with Philip Morris International is also on his agenda.
