Pakistan discusses reforms with MSCI and Deutsche Bank

Pakistan has discussed its capital market reforms, financing options and investment prospects with Morgan Stanley Capital International (MSCI) and Deutsche Bank, as the government presses a reform agenda alongside its search for new financing.

Finance Minister Muhammad Aurangzeb met representatives of both institutions on the sidelines of the World Bank Group-IMF Annual Meetings 2026 in Bangkok. The MSCI meeting, which the governor of the State Bank of Pakistan also attended, covered the index provider's classification criteria and foreign investors' concerns over foreign exchange, prefunding, hedging and pooled investments. Repatriation arrangements through Special Convertible Rupee Accounts and expanded access to Roshan Digital Accounts were also discussed, and participants agreed on technical follow-up to address operational concerns and improve market accessibility.

In a separate meeting, Aurangzeb told Deutsche Bank representatives that macroeconomic stability, foreign exchange reserves, sovereign ratings and investor confidence had improved. He outlined Pakistan's return to international capital markets through private placements, Panda bonds and Eurobonds, and said the government was exploring ways to diversify financing sources, including Sukuk, rupee-denominated bonds settled in dollars and the possible tokenisation of Eurobonds. The discussions also covered debt management, currency diversification and investor outreach in Europe and other markets.

Aurangzeb welcomed Deutsche Bank's interest in providing strategic advisory support for privatisation, including of power distribution companies and major airports, and encouraged greater corporate engagement and support for foreign portfolio investment.

The account of the meetings rests on the finance ministry's description of the discussions. No decisions on Pakistan's index classification or on any specific financing transaction were announced.