Aurangzeb highlights Pakistan’s push for smarter debt, digital innovation in Washington

WASHINGTON: Finance Minister Muhammad Aurangzeb has outlined Pakistan’s plans to extend the maturity profile of its domestic and external debt to reduce refinancing and interest rate risks, as part of a broader strategy to boost debt sustainability and financial resilience.

Speaking on the fifth day of his visit to Washington D.C., where he is attending the Annual Meetings of the International Monetary Fund and the World Bank Group, Aurangzeb highlighted efforts to re-enter international capital markets. He confirmed that Pakistan intends to issue Panda Bonds, Eurobonds, and International Sukuk, adding that follow-ups on proposals shared with the relevant ministries are underway.

In meetings with global stakeholders, the finance minister welcomed collaboration with TCX, a leading currency hedging organisation, to support hedging mechanisms for local currency loans. He also expressed appreciation to the UK for its longstanding development partnership with Pakistan during a meeting with Baroness Jenny Chapman, UK Minister for International Development and Africa. Aurangzeb highlighted the importance of wider stakeholder consultation in project selection, improved visibility of off-budget initiatives, and the continued development of the Digital Dashboard.

Aurangzeb also met Dr Hajar El Haddaoui, Director General of the Digital Cooperation Organisation, to reaffirm Pakistan’s commitment to inclusive digital growth and cross-border collaboration. He outlined key priorities in information technology, payment rails, and digitisation of government payments, emphasising capacity building and replication of successful digital models.

The finance minister participated in a roundtable organised by the Peterson Institute of International Economics on Pakistan’s economic opportunities and challenges through 2025 and beyond. He briefed participants on the IMF staff-level agreement, recent credit rating upgrades, and the ongoing transformation of the Federal Board of Revenue, which focuses on people, processes, and technology.

Aurangzeb’s engagements signal Pakistan’s push to strengthen financial resilience while advancing its digital transformation, reflecting a focus on sustainable growth and international collaboration.