Finance Minister Stresses Urgent Global Action on Climate Resilience at IMF and World Bank Meetings
Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, emphasized the urgent need for global action on climate resilience and economic diversification during the 2025 Spring Meetings of the World Bank Group (WBG) and the International Monetary Fund (IMF) in Washington, DC.
Addressing the dialogue for the Fund for Responding to Loss and Damage (FRLD), Aurangzeb described climate change as an existential crisis for Pakistan, referencing the devastating 2022 floods. He called for the rapid activation of the Loss and Damage Fund through streamlined, transparent, and flexible mechanisms to ensure timely support for vulnerable nations.
Throughout a series of bilateral meetings, Aurangzeb focused on strengthening foreign investment, advancing economic reforms, and promoting climate finance initiatives.
In a meeting with Hiroshi Matano, Executive Vice President of the Multilateral Investment Guarantee Agency (MIGA), Aurangzeb acknowledged MIGA’s efforts in resolving the Star Hydro project dispute and welcomed an upcoming mission to Pakistan later this year.
During talks with Thomas Lersten, a senior US State Department official, Aurangzeb thanked the United States for its backing during the Pakistan Minerals Conference and highlighted the urgency of addressing tariff-related issues. He also shared that a high-level trade and investment delegation from Pakistan would soon visit the US to enhance bilateral economic ties.
Meeting with Makhtar Diop, Managing Director of the International Finance Corporation (IFC), Aurangzeb pointed to Pakistan’s improving macroeconomic situation, underscored by a recent credit rating upgrade by Fitch. He urged swift progress on IFC’s advisory assistance for Karachi Airport and subnational capacity-building programs.
In discussions with officials from the US Export-Import Bank, the minister provided updates on Pakistan’s fiscal reforms and achievements under the IMF’s Extended Fund Facility (EFF) and Resilience and Sustainability Facility (RSF), while encouraging increased American investment in key sectors such as the Reko Diq mining project.
At a session with JP Morgan Chase, Aurangzeb reaffirmed Pakistan’s stable macroeconomic trajectory and outlined plans to diversify its market access. He also indicated Pakistan’s readiness to re-enter international capital markets through a Panda Bond issuance.
Speaking at an IMF panel discussion titled “Navigating an Uncertain World,” Aurangzeb stressed the importance of regional trade, economic diversification, and export-driven growth, particularly highlighting the potential of Pakistan’s technology and IT sectors.
Additionally, Aurangzeb engaged in talks with Dev Jagadesan, Acting CEO of the US International Development Finance Corporation (DFC), and met with Baroness Jenny Chapman, the UK’s Minister of State for International Development. He expressed appreciation for the UK’s enduring development partnership and discussed progress under the World Bank’s 10-year Country Partnership Framework for Pakistan, which focuses on climate resilience and population strategies. Aurangzeb also praised the UK’s REMIT initiative aimed at enhancing transparency in development aid.
