Pakistan courts US Treasury and MSCI on reforms and emerging market status
Pakistan's finance minister, Senator Muhammad Aurangzeb, met the US Treasury's Under Secretary for International Affairs, Erin Browne, on the sidelines of the World Bank Group–IMF Annual Meetings 2026 to discuss the country's economic outlook, reform agenda and external financing strategy, according to a news release.
Aurangzeb pointed to Pakistan's US$3 billion Eurobond issuance in September and plans to diversify financing through Sukuk, Panda bonds and other instruments. He cited progress under the IMF programme, tax reforms, three consecutive years of primary surpluses and foreign exchange reserves of approximately US$21.6 billion. The talks also covered the regional conflict's implications for energy, inflation and food security, and measures to secure supplies ahead of winter demand. The minister stressed export-led growth, stronger IT exports, improved goods competitiveness and debt sustainability as routes towards a BB sovereign rating, and raised privatisation, airport outsourcing, engagement with Boeing and potential US EXIM Bank financing.
In a separate meeting, Aurangzeb and State Bank of Pakistan Governor Jameel Ahmad met representatives of Morgan Stanley Capital International to discuss capital market reforms and Pakistan's prospects for emerging market status. The minister highlighted improving economic indicators and increased stock market participation. Discussions covered MSCI's market classification criteria and investor queries on foreign exchange, prefunding, hedging and pooled investments, and clarified repatriation arrangements under the Special Convertible Rupee Account and expanded access to Roshan Digital Accounts. Participants supported technical follow-up on operational concerns.
Aurangzeb and the SBP governor also met Sara Jane Ahmed, managing director of the CVF–V20 Secretariat, on climate finance and Pakistan's climate prosperity plan. The minister welcomed efforts to expand concessional financing and attract sovereign investment into water, health and education projects, and noted a proposed Lifeline Fund targeting readiness by April 2027, with initial mobilisation of US$500 million and eventual expansion beyond US$2 billion. He sought clarification on the fund's contributions, governance, access, returns and withdrawal arrangements, which the release said remained under development. The meeting also covered a proposed country platform, an investor book, the BRIDGE initiative and cooperation with Chinese institutions and development partners.
