Muhammad Aurangzeb sets out for IMF, World Bank meetings

Finance Minister Muhammad Aurangzeb is set to participate in the 2025 Spring Meetings of the World Bank (WB) and the International Monetary Fund (IMF). The high-profile meetings will feature a number of high-ranking state officials and are scheduled to take place in Washington, United States.

According to credible reports, the meetings will last six days (April 21-26) and Muhammad Aurangzeb will meet with international creditors and foreign dignitaries. Aside from officials from the IMF and the World Bank, notable attendees will include central bankers and finance ministers from most countries.

Muhammad Aurangzeb has meetings scheduled with the World Bank, the IMF, several international credit rating agencies, and even investment and commercial banks. Recently, Pakistan’s credit rating has improved on the global scale, as both Fitch and Moody’s upgraded Pakistan's rating.

If Muhammad Aurangzeb can give rating agencies a positive outlook, it could help Pakistan unlock a plethora of economic benefits. Generally, a higher rating translates into lower borrowing costs, greater foreign direct investment inflows and improved access to international capital markets.

With Pakistan being deemed as creditworthy by credit agencies, investors are more likely to park their funds in the domestic economy. More importantly, it could make it easier for Pakistan to issue bonds in international markets if other credit rating agencies follow suit after meeting with Muhammad Aurangzeb. 

Aside from meetings with institutions, reports indicate that he is expected to meet with key officials from the US State and Treasury Departments, as well as China, Saudi Arabia, and the United Kingdom. According to reports, Muhammad Aurangzeb will also participate in the 13th Ministerial Meeting of the Coalition of Finance Ministers for Climate Action.

Analysts believe that he will likely attempt to negotiate a better commercial arrangement with the Trump administration. While temporarily suspended, Pakistan faces a 29 percent tariff from the US, which could detrimentally affect the domestic economy. 

A recent report by the Pakistan Institute of Development Economics (PIDE) revealed that US tariffs could result in a reduction of approximately $1.4 billion in Pakistan's foreign exchange inflow.  Moreover, a spike in the domestic unemployment rate is possible as PIDE projects that half a million workers could be fired.

Many believe that if Muhammad Aurangzeb or subsequent delegations from Pakistan are unable to secure better terms for Pakistan, the macroeconomic losses may prove to be devastating. Reports suggest that a team from Pakistan might depart for the US in the coming weeks to meet with state officials to discuss trade agreements and outstanding tariffs.