KARACHI (Web Desk) - Federal Minister for Finance and Revenue Muhammad Aurangzeb met with officials from a global bank on Tuesday to discuss sovereign financing options and potential cooperation as the government continues to work with external partners on debt management and capital market issues, said an official statement.
The discussions with Citibank came amid Pakistan’s efforts to strengthen its economy under a $7 billion International Monetary Fund (IMF) loan program. While the IMF has acknowledged progress, it has also cautioned that the country’s recovery remains fragile and warned that high public debt, fiscal pressures and exposure to external shocks continue to pose risks to long-term stability.
“The meeting provided an opportunity to engage on sovereign financing solutions and review potential avenues for cooperation between the Government and Citibank,” the finance ministry said.
The term “sovereign financing solutions” is used to cover financing, debt management and market-related services offered to governments.
The statement said the finance minister’s team overseeing debt management, capital markets and other relevant policy areas was also present at the meeting.
“The Finance Ministry team briefed the [bank] delegation on the Government’s ongoing work on sovereign funding programs, including preparatory work on medium-term note structures, while noting that immediate focus remains on concluding priority transactions currently under process,” the ministry said.
The finance minister stressed the value of sustained engagement and senior-level involvement by international financial institutions, saying Pakistan has been an important market for global banks in the past.
His team also highlighted areas where Citibank’s global capabilities could be leveraged by the government.
Pakistan faced a prolonged economic crisis in recent years, marked by fiscal pressure, high debt levels and balance-of-payments difficulties, and subsequently entered an IMF-supported program to stabilize the economy. Growth has been modest, inflation has eased from earlier highs, and foreign exchange reserves have improved under the program’s terms, according to IMF and government data.
The government said it remains focused on structural reforms and on attracting investment as part of broader efforts to strengthen economic fundamentals and support growth.