BANGKOK, Oct 17, 2026: Pakistan explored a proposed US$1.5 billion financing structure combining a World Bank policy based guarantee with coverage from the Multilateral Investment Guarantee Agency, while seeking guidance on the requirements for entering the BB sovereign rating category. Finance Minister Muhammad Aurangzeb and State Bank of Pakistan Governor Jameel Ahmad held meetings with international banks, investors, credit rating agencies and development institutions on the sidelines of the IMF and World Bank Group Annual Meetings.
The meetings covered borrowing instruments, sovereign ratings, infrastructure financing, investment access and climate finance. Pakistan has completed a US$3 billion Eurobond issuance in September. Other proposals discussed in Bangkok, including the guarantee backed financing structure and a climate focused Lifeline Fund, remain under development.
Proposed financing structure and sovereign rating
Alvarez & Marsal examined a potential financing structure combining a World Bank policy based guarantee with MIGA coverage to mobilise about US$1.5 billion at competitive rates. The amount would depend on the available guarantee envelope and the final transaction structure, the Finance Ministry said.
The government supported further technical work involving the Finance Division, Economic Affairs Division and World Bank Group. The discussions included the possible use of an existing Development Policy Operation to avoid delays. Advisory work relating to the privatisation of power distribution companies was also raised.
J.P. Morgan discussed Pakistan’s ambition to reach the BB sovereign rating category and offered analytical support on rating indicators and institutional improvements. The meeting also covered Sukuk, rupee denominated bonds settled in dollars, Panda bonds, possible Eurobond tokenisation, debt replacement and longer maturities, according to the ministry’s release.
Finance Minister Discusses Financing Strategy, Credit Rating Prospects and Capital Market Instruments with J.P. Morgan Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, met with the J.P. Morgan delegation on the sidelines of the World Bank Group–IMF Annual Meetings 2026 in Bangkok, Thailand, to discuss Pakistan’s economic outlook, credit ratings and financing strategy. The Finance Minister highlighted progress under the IMF programme, stronger reserves and restored market access, reaffirming the government’s commitment to structural reforms. Both sides discussed Pakistan’s ambition to enter the BB rating category, with J.P. Morgan offering analytical support on key indicators and institutional improvements. Discussions covered Sukuk, rupee-denominated dollar-settled bonds, Panda bonds and possible Eurobond tokenization, and prioritizing debt replacement and longer maturities. The Finance Minister thanked J.P. Morgan for its advice on an opportunistic approach amid global interest rate risks and investor engagement and private placement underwriting support. Both sides also reviewed Multilateral Investment Guarantee Agency (MIGA)-backed financing, International Finance Corporation (IFC)-supported Diversified Payment Rights (DPR) transaction, rupee financing and potential loan conversions. Discussions further covered resilient remittance flows, regional risks, and potential debt swaps, credit enhancement and secured financing.
— Ministry of Finance, Government of Pakistan (@Financegovpk) October 17, 2026
Lazard discussed Pakistan’s sovereign credit prospects, mining investment and financing options, including blended finance, sustainability linked loans, guaranteed Sukuk and debt swaps. The meeting also covered plans for Panda bonds and advisory support on sovereign ratings. Follow up was to be coordinated through the Debt Management Office and the State Bank, the Finance Ministry said.
At the meeting with Fitch Ratings, Aurangzeb and Governor Ahmad reviewed Pakistan’s economic performance and sovereign outlook. The delegation outlined progress in fiscal consolidation, primary surpluses, inflation management, exchange rate stability, the current account and foreign exchange reserves. Aurangzeb sought Fitch’s assessment of the requirements for Pakistan to reach the BB category, according to the official announcement.
Banks and infrastructure financing
Standard Chartered discussed financing options that included Sukuk, rupee denominated dollar settled bonds, Panda bonds, tokenisation, gold backed liquidity and energy price hedging. Other subjects included diaspora deposit products, financing against rupee denominated securities and export credit financing for power transmission, railway and road projects, the ministry said.
With Abu Dhabi Commercial Bank, Aurangzeb discussed financing cooperation involving the International Islamic Trade Finance Corporation, MIGA backed financing and an International Finance Corporation supported Diversified Payment Rights transaction. The government’s announcement also lists refinery upgrades, airport outsourcing, electricity transmission, the ML 1 railway, data centres and digital finance among the subjects raised.
Sharjah Islamic Bank expressed readiness to participate in a future Sukuk issuance. Its meeting also covered MIGA backed financing and other financial instruments, the Finance Ministry reported.
MUFG considered blended finance and credit enhancement for infrastructure projects linked to WAPDA and Dasu hydropower. Other subjects included refinery modernisation, the privatisation of power distribution companies and life insurance, and airport outsourcing while retaining public ownership of the assets. At a separate investor session organised by MUFG, Aurangzeb projected economic growth of 3.5 to 4.5 per cent. Investors raised questions about foreign exchange liberalisation, agricultural income tax, fiscal devolution and the timing of future bond issuance.
State Bank outlook and investor discussions
Governor Ahmad briefed executives from international banks and investment institutions, including J.P. Morgan, Citibank, Jefferies, Deutsche Bank, Barclays, Bank of America, MSCI, Standard Chartered and Mitsubishi UFJ Financial Group. The State Bank’s Governor said inflation had fallen from elevated levels in FY2023 to almost the target range in FY2026 despite an oil price shock.
The State Bank reported GDP growth of 3.7 per cent in FY2026 and projected growth of 3.5 to 4.5 per cent in FY2027. It said foreign exchange reserves had increased from less than US$3 billion in February 2023 to US$21.5 billion on October 9, 2026, while forward liabilities had fallen from more than US$5.7 billion to less than US$1 billion.
Pakistan’s economy has become more resilient in the face of domestic and external shocks'; says Governor #SBP Mr. Jameel Ahmad while addressing foreign investors on the sidelines of IMF-World Bank annual meetings in Bangkok, Thailand. Governor highlighted that inflation declined sharply from elevated levels in FY23 to almost within the target range in FY26 despite the significant oil price shock, real GDP growth reached 3.7% in FY26, & SBP’s FX reserves recovered from less than $3 billion in Feb 2023 to $21.5 billon by Oct 9, 2026. Pakistan’s economic fundamentals remain strong & the economy is in a significantly better position to achieve sustainable growth. For details: https://t.co/dcf4eBFJqX
— SBP (@StateBank_Pak) October 17, 2026
The State Bank attributed much of the reserve increase to foreign exchange purchases, supported by a near balanced current account in FY2026, formal remittances and reforms to exchange companies. It projected a current account deficit of zero to one per cent of GDP in FY2027 and reported a third consecutive primary surplus in FY2026, alongside a decline in the debt to GDP ratio.
The governor linked continued implementation of the reform agenda with investor confidence, sovereign rating upgrades and access to global capital markets. The State Bank also reported that Pakistan had reached staff level agreements with the IMF on reviews under the Extended Fund Facility and the Resilience and Sustainability Facility.
IMF and development priorities
Aurangzeb met Jihad Azour, director of the IMF’s Middle East and Central Asia Department, to review Pakistan’s economic performance and reform programme. The Finance Ministry said the talks covered revenue mobilisation, inflation, growth, the current account, energy procurement, preparations for winter and fertiliser supplies.
The minister reaffirmed the government’s commitment to maintaining primary surpluses, reducing public debt and reforming taxation while protecting social spending. Privatisation, greater private sector participation and export growth were also discussed, the ministry said.
In a separate meeting, UNDP Administrator Alexander De Croo and Aurangzeb discussed development financing and preparing projects for investment. The government’s announcement refers to the UNDP Implementation Bridge, investment pipelines through the SDG Investment Fair and V20 platform, blended finance and public private partnerships.
The talks also covered biodiversity finance, possible debt for nature and debt for climate swaps, digital finance, guarantees for small businesses and farmers, and insurance against climate risks. The ministry said Pakistan’s external debt composition would need to be considered when assessing potential debt swaps.
Market access and external financing
In talks with Deutsche Bank, Aurangzeb referred to Pakistan’s US$3 billion Eurobond issuance in September, stronger reserves and renewed access to international capital markets. The discussions covered Sukuk, Panda bonds, rupee denominated instruments settled in dollars, possible Eurobond tokenisation and currency diversification. Deutsche Bank also expressed interest in advising on the privatisation of power distribution companies and major airports.
Privatisation and external financing featured in talks with US Treasury Under Secretary for International Affairs Erin Browne. Aurangzeb and the State Bank governor discussed Pakistan’s economic outlook, external financing and reforms. The government cited foreign exchange reserves of about US$21.6 billion and the September Eurobond issuance. IT exports, airport outsourcing, aviation cooperation and possible US Export Import Bank financing were also raised, according to the Finance Ministry.
The UK’s Minister for International Development, Kirsty McNeill, discussed economic reforms, bilateral cooperation and climate resilience with Aurangzeb. The meeting covered British International Investment’s pipeline, solar power, battery storage, electricity grid viability, aviation cooperation and climate finance, the government said.
Finance Minister, UK Minister for International Development Discuss Economic Reforms, Investment, Energy Transition and Climate Resilience Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, met with H.E. Kirsty McNeill, UK Minister for International Development, on the sidelines of the World Bank Group–IMF Annual Meetings 2026 in Bangkok, Thailand, to discuss economic reforms, bilateral cooperation and climate resilience. The Finance Minister highlighted fiscal consolidation, stronger reserves, sovereign rating upgrades and renewed access to international capital markets. He emphasized export-led growth, tariff and tax reforms, and expanding IT exports and upskilling freelancers. He appreciated UK assistance through REMIT and support for the Reforms for Growth programme. The Finance Minister welcomed British International Investment’s growing investment pipeline. Discussions also covered privatization, airport outsourcing and aviation cooperation involving potential engagement with Airbus and Rolls-Royce. Participants examined solar adoption, battery storage, grid viability and UK technical support for the energy transition. Both sides emphasized simpler climate finance access and bankable projects, with the Finance Minister highlighting disaster preparedness and the BRIDGE initiative.
— Ministry of Finance, Government of Pakistan (@Financegovpk) October 16, 2026
Canadian investment and climate finance
In his meeting with Canada’s Secretary of State for International Development, Randeep Sarai, Aurangzeb discussed an investment protection agreement and potential Canadian investment in agriculture, agrotechnology, livestock, food security, IT services, artificial intelligence and virtual assets.
The talks also covered the Barrick mining project and its potential contribution to exports and employment, along with regional developments affecting energy, fertiliser supplies and food security. Aurangzeb thanked Canada for its flood assistance and invited Sarai to visit Pakistan, the Finance Ministry said.
Climate finance featured in a separate meeting with Sara Jane Ahmed, managing director of the Vulnerable Twenty Group’s V20 Secretariat. The discussion covered Pakistan’s Climate Prosperity Plan and a proposed Lifeline Fund to finance climate related needs.
The fund aims to be ready by April 2027, initially mobilise US$500 million and potentially expand beyond US$2 billion. Contributions, governance, access, returns and withdrawal arrangements remain under development. The ministry also refers to a proposed country platform and coordination with development partners.
Aurangzeb emphasised the role of relevant ministries, integration with the national budget and coordination with UNDP and other partners.
Global outlook and Pakistan’s financing plans
The IMF’s October World Economic Outlook projects global growth of 3.1 per cent in 2026 and headline inflation of 4.7 per cent. It identifies conflict escalation, trade tensions and fiscal vulnerabilities among the risks to the outlook.
The World Bank’s regional economic update describes the effects of regional conflict on trade, aviation, logistics and business sentiment. Its projections show developing oil importing economies, including Pakistan, facing continued pressure from higher food and energy prices.
