Finance Minister to discuss China debt in Washington

Finance Minister Muhammad Aurangzeb to discuss China debt in Washington on the sidelines of IMF spring meetings.

Pakistan’s Finance Minister, Muhammad Aurangzeb, is expected to address the matter of rescheduling state-backed debt with his Chinese counterpart during meeting on the sidelines of the IMF spring meetings in Washington next week.

In addition to discussions with Chinese officials, the finance minister is also scheduled to hold meetings with the IMF’s Managing Director and a senior official from the U.S. Treasury, as per government sources.

Aurangzeb is set to meet with Chinese Finance Minister Lan Fo’an on Wednesday during his six-day visit. A primary focus will be Pakistan’s pending appeal for a two-year rescheduling of $3.4 billion in Chinese debt to help manage its external financing gap.

Key finance officials, including Secretary Finance Imdad Ullah Bosal, SBP Governor Jameel Ahmad, and Economic Affairs Secretary Kazim Niaz, are also traveling to the U.S. to attend the spring sessions.

The debt rescheduling was formally requested by Deputy Prime Minister Ishaq Dar during a prior visit to Beijing. The government has asked China’s Exim Bank to restructure its loans, following a similar request made by the finance minister in September last year.

This move follows Pakistan’s recent repayment of $1.3 billion in commercial debt to China, including $300 million repaid this week. Talks are ongoing to refinance this amount, although recent gains in remittances have led some officials to reconsider the need for renewal.

Aurangzeb will also hold discussions with Saudi Finance Minister Mohammed Aljadaan during the visit.

Unlike prior years, top U.S. Treasury officials are not expected to meet Pakistan’s delegation. Instead, Robert Kaproth, Assistant Secretary of the Treasury for International Finance, may meet Aurangzeb.

While recent communications with U.S. officials have picked up, no direct meetings with senior American authorities have occurred. Last month, however, Pakistan’s deputy prime minister held phone talks with both the U.S. National Security Advisor and Secretary of State.

Aurangzeb is also expected to meet with Acting President of the U.S. Exim Bank, James C. Cruse.

The U.S. Exim Bank has shown interest in lending around $1 billion for the Reko Diq mining project but has requested preferential creditor status—something Pakistan had previously declined.

The first phase of the Reko Diq copper and gold project has now been revised to $6.8 billion due to increased costs and a broader project scope. Of this, $3 billion will be raised through debt financing.

Debt negotiations are progressing, led by a World Bank Group affiliate expected to provide $300 million. Shareholders will contribute the remaining $3.7 billion as equity.

Aurangzeb may also meet with officials from the U.S. International Development Finance Corporation to discuss potential support for Pakistan’s privatization efforts.

A scheduled meeting with IMF Managing Director Kristalina Georgieva will focus on evaluating progress in Pakistan’s $7 billion programme. A staff-level agreement for a $1 billion tranche was reached last month, though a board date is still awaited.

Aurangzeb may also engage with senior IMF officials, including Assistant Director Nikolay Gueorguiev, Deputy Managing Director Nigel Clarke, and Director Jihad Azour, to further the programme discussions.

He will also take part in a panel on Pakistan’s medium-term revenue strategy, where previous attempts at increasing revenue have disproportionately impacted salaried workers, while efforts to tax traders have been ineffective.

While provinces have enacted new agricultural income tax laws under IMF directives, these laws have yet to be implemented.

Aurangzeb is also expected to hold talks with Asian Development Bank President Masato Kanda and World Bank Group President Ajay Banga, as well as South Asia VP Martin Raiser.

One of the major events during the meetings is a special briefing to member embassies of the Climate Vulnerable Forum, where Aurangzeb will meet with Secretary General Mohamed Nasheed.

The V20 forum addresses climate challenges across its 68 member countries, focusing on financing, disaster resilience, and shared prosperity through international collaboration.

Aurangzeb will also attend a session of the Coalition of Finance Ministers for Climate Action (CFMCA) during the spring meetings.

He is slated to speak at the Atlantic Council about Pakistan’s economic outlook beyond 2025 and will also brief investors—through Jefferies International—on fiscal reforms and macroeconomic updates.

Additionally, a meeting with Philip Morris International is also on the minister’s agenda.