Pakistan’s Finance Minister, Dr. Shamshad Akhtar, is currently attending the annual meetings of the International Monetary Fund (IMF) and the World Bank, seeking one-on-one meetings with the heads of these influential financial institutions. While the Minister has yet to secure these meetings, discussions with the next tiers in the hierarchy are in the works. These meetings are taking place in Morocco and provide a crucial platform for exchanging views on matters of mutual interest and reaching consensus on outstanding issues.
Efforts have been made to schedule meetings with IMF Managing Director Kristalina Georgieva and World Bank President Ajay Banga, but both heads cited busy schedules as a reason for their unavailability. However, the Ministry of Finance is continuing its efforts to secure an audience with these high-ranking officials.
The Pakistani delegation at the meetings comprises key figures, including Finance Minister Dr. Shamshad Akhtar, State Bank of Pakistan (SBP) Governor Jameel Ahmed, Secretary Finance Imdadullah Bosal, and Secretary Economic Affairs Dr. Kazim Niaz. Additionally, Pakistan’s new Executive Director in the World Bank, Tauqir Shah, is expected to join the delegation, further reinforcing Pakistan’s presence at this crucial event.
The annual meetings serve as a platform for discussing global economic issues, financial stability, and development matters. It also offers an opportunity for high-level discussions on topics of mutual interest. In the past, these meetings have played a pivotal role in exchanging views and reaching consensus on critical issues.
It’s noteworthy that former Prime Minister Shehbaz Sharif and the IMF Managing Director reached an understanding regarding a new bailout program during the Climate Summit in Paris in June. However, the precise reasons for the IMF and the World Bank’s refusal to meet with Pakistan’s Finance Minister are yet to be disclosed.
First review talks between Pakistan and the IMF are expected to take place next month, as the country faces a substantial external financing requirement of over $26 billion for this fiscal year. However, internal assessments indicate a financing gap of at least $4.5 billion, primarily due to Eurobonds and foreign commercial loans.
While IMF Managing Director Kristalina Georgieva and World Bank President Ajay Banga did not grant appointments, IMF Deputy Managing Director Antoinette Sayeh and the World Bank’s Managing Director for Operations, Ana Bjerde, met with the Finance Minister. Martin Raiser, Vice President of the World Bank for South Asia, is also scheduled to hold discussions with Dr. Shamshad Akhtar.
It’s essential for Pakistan to engage in high-level meetings to secure the funding required to meet its budgeted financing needs. The finance minister is also set to meet with the Managing Director of Lazard, a global firm specializing in debt restructuring. Lazard has previously expressed its interest in assisting with debt rescheduling, although the government has not officially announced plans to reschedule its external debt.
Moreover, the finance minister will engage with representatives from three major international credit rating agencies. These agencies have downgraded Pakistan, increasing its borrowing costs and creating obstacles for arranging new foreign commercial loans. Seeking engagements with non-Chinese banks is crucial, as some have previously provided loans but are now reluctant due to Pakistan’s poor credit rating and growing external sector risks. Meetings are planned with representatives of Standard Chartered Bank and Deutsche Bank.
The finance minister also intends to meet with the Chairman of the Islamic Development Bank and the President of the Asian Development Bank, two multilateral lenders whose support is critical to Pakistan’s external financing requirements for this fiscal year.
Discussions will be held with the finance minister of Saudi Arabia, Iran, and the Vice President for Policy of the Asian Infrastructure Investment Bank (AIIB). AIIB has committed to providing a $250 million budget support loan to Pakistan, but the window for this support is expected to close by the end of December. The finance minister’s engagements will play a pivotal role in securing critical funding to meet Pakistan’s financing needs.
