Finance minister's IMF meetings could help unlock second $1bn tranche

Pakistan's Finance Minister Muhammad Aurangzeb has met with the chiefs of the International Monetary Fund (IMF) and the World Bank (WB) during the 2025 Spring Meetings of international creditors. According to reports, the high-profile meetings will continue until 26 April.

Aside from his meetings with global lenders, the finance minister will hold discussions with his counterparts, central bankers, international credit rating agencies, as well as investment and commercial banks. The aim of the meetings will be to tackle issues plaguing most countries, such as sovereign liabilities and climate finance.

Reports have revealed that the WB and IMF executives dialled in on Pakistan's economic recovery plan. Moreover, the international lenders focused on how the government can implement reforms and stay on track to follow existing loan programs.

As per reports, discussions with international creditors have been positive, with key figures reportedly describing the conversations as ‘constructive’.  This could spell great news for the economy, as Pakistan currently awaits an influx of funds from international sources, which can be unlocked once the IMF gives its approval. 

The finance minister held a meeting with the Managing Director of the IMF. Analysts believe that this could help swing the IMF’s $7 billion Extended Fund Facility (EFF) review in favor of Pakistan. 

Reports suggest that Pakistan is currently awaiting the disbursement of a second $1 billion tranche. While the finance minister's visit could paint a positive picture, the IMF's review team is still set to visit Pakistan on May 14. 

Finance Minister Aurangzeb also met Ajay Banga, The World Bank’s President, to discuss medium-run reform policies. According to reports, these policies cover economic issues such as fiscal consolidation and energy sector reforms.

Discussions with the WB’s president also led to the topic of development financing. Many believe that if the World Bank decides to grant funds to Pakistan, its macroeconomic indicators may improve.

According to reports, the finance minister has already had six meetings since arriving in Washington, DC. However, several important meetings remain, such as those with dignitaries from the United States (US), China, the Kingdom of Saudi Arabia  (KSA) and the United Arab Emirates (UAE).

The finance minister's meeting with his Chinese counterpart is vital as both sides will visit Islamabad’s request to reschedule debt liabilities to alleviate pressure on Pakistan’s financing requirements. Reports have revealed that if successful, Pakistan could see $3.4 billion of debt rescheduled, providing the economy with some breathing room.