Pakistan Expects $1.3 Billion IMF Tranche Soon, Says Finance Minister Muhammad Aurangzeb

Washington (News Desk) — Federal Finance Minister Muhammad Aurangzeb has expressed optimism that Pakistan will soon receive an International Monetary Fund (IMF) tranche of approximately $1.3 billion, stating that approval is expected in the near future.
Speaking to international media in Washington, the finance minister said there is currently no need to expand or revise the existing IMF program. However, he added that Pakistan could return to the IMF if economic conditions weaken.
He reiterated the government’s commitment to maintaining external debt repayments and ensuring macroeconomic stability, noting that Pakistan is actively exploring multiple financing options, including Eurobonds, Sukuk, and commercial borrowing.
Aurangzeb stated that Pakistan’s foreign exchange reserves currently cover around 2.8 months of imports. He also revealed that the country is preparing to issue its first-ever $250 million Panda bond, with the overall program expected to reach $1 billion, supported by institutions such as the Asian Development Bank (ADB) and the Asian Infrastructure Investment Bank (AIIB).
He further said that remittances are projected to reach $41.5 billion in the current fiscal year, while GDP growth is expected to remain around 4 percent.
Highlighting external pressures, the minister noted that rising global oil prices due to Middle East tensions are adding pressure on Pakistan’s economy. He added that the government is also considering building strategic petroleum reserves and increasing LPG and fuel storage capacity, alongside a gradual transition toward renewable energy.
During his visit, the finance minister held meetings with IMF officials, including the IMF Director for the Middle East and Central Asia and Pakistan’s mission team, as well as U.S. Treasury officials. He also met representatives of the Saudi Fund for Development and Mastercard’s global affairs leadership.