Muhammad Aurangzeb, Chinese FM review bilateral economic, financial ties

April 17, 2026 (MLN): Economic cooperation between Pakistan and China was further reinforced during a high-level interaction held on the sidelines of the World Bank–IMF Spring Meetings 2026, where both sides discussed bilateral financial ties, multilateral engagement, and ongoing macroeconomic developments.

The Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, met Mr. Lan Fo’an, Minister of Finance of the People’s Republic of China, and expressed Pakistan’s strong appreciation for China’s long-standing and consistent support.

He also acknowledged the constructive role of China’s Executive Director at the International Monetary Fund (IMF) in advancing Pakistan’s programme-related engagements.

Providing an update on Pakistan’s economic reform trajectory, the Finance Minister briefed the Chinese counterpart on progress under the IMF-supported programme.

He highlighted the successful conclusion of a Staff-Level Agreement for the third review under the Extended Fund Facility (EFF) and the second review under the Resilience and Sustainability Facility (RSF), adding that approval by the IMF Executive Board is expected in early May.

He further informed that Pakistan has successfully repaid its $1.4bn Eurobond, while also securing additional financial inflows from the Kingdom of Saudi Arabia to strengthen external account stability and support foreign exchange reserves.

The Finance Minister also outlined developments regarding Pakistan’s inaugural Panda bond issuance, noting that it forms part of a broader strategy to diversify financing sources and expand participation in international capital markets.

On bilateral trade and financial integration, he highlighted the rising share of Renminbi (RMB)-based settlements in Pakistan–China trade, underscoring the need to expand the currency swap arrangement in line with growing trade volumes.

Reaffirming Pakistan’s commitment to regional cooperation, Senator Aurangzeb appreciated the Chinese Finance Minister’s recognition of Pakistan’s constructive regional role.

He also reiterated Pakistan’s full and unconditional support for the establishment of the Shanghai Cooperation Organization (SCO) Development Bank, particularly in view of Pakistan’s upcoming SCO Presidency in September.

The interaction concluded with appreciation for the continued support extended by China’s Executive Directors at both the IMF and the World Bank, showing the depth and resilience of Pakistan–China economic relations.

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