Pakistan's finance chief seeks deeper US trade ties, welcomes reform efforts at global lenders

23/04/2025 05:48 AST

Pakistan's finance minister said on Tuesday the country wants to broaden trade and investment ties with the United States, especially in minerals critical to the energy transition, while also joining other vulnerable economies in urging reforms at the World Bank and International Monetary Fund (IMF).

Minister Muhammad Aurangzeb is currently in Washington to attend the IMF-World Bank Spring Meetings, where policymakers are grappling with debt distress, climate vulnerabilities and growing calls from the Global South to reshape how multilateral institutions lend and design reforms.

The IMF has acknowledged the need to tailor programs more toward pro-growth reforms and private-sector led development, particularly for repeat borrowers like Pakistan.

"We genuinely believe that there's a win-win situation," Aurangzeb said at the Atlantic Council, pointing to high-level US interest in Pakistan's copper and rare earth potential. "Reko Diq is only the first one... the value addition and downstream stuff is going to be really game-changing for Pakistan."

Aurangzeb downplayed concerns over US tariffs, saying the country saw greater opportunity in rebalancing trade and attracting strategic investment.

He reiterated a high-level delegation from Islamabad would visit Washington in the coming weeks to explore broader cooperation beyond tariffs, citing minerals, agriculture and green technology as key areas.

On multilateral reform, Aurangzeb welcomed the willingness of IMF and World Bank leaders to reassess their lending frameworks, especially in light of liquidity strains across the Global South.

"These institutions also need to have ownership and accountability at their end to really drive impact," he said, calling for a system that allows countries like Pakistan to access flexible financing and avoid perpetual debt cycles.

He praised recent efforts to unify public and private sector arms within the World Bank and to coordinate better with other lenders like the ADB and AIIB.

IMF Managing Director Kristalina Georgieva said on Tuesday the international lending agency was not just telling countries to get their own houses in order, but was also looking at the way it does business, including conducting a review of how it designs loan programs, and determines their length and conditions.

She said the IMF was also looking at countries that have had repeated programs, such as Pakistan, Argentina and Egypt, to ensure loan programs were designed the right way.

Pakistan has been in over 20 IMF programs, including a $7 billion Extended Fund Facility finalized last year to stabilize its economy.

Aurangzeb said the government was pursuing structural reform, with a focus on climate, population, and fiscal sustainability, including efforts to broaden the tax base and digitize enforcement.