ISLAMABAD: Amidst Washington’s reluctance to set aside $10 billion under the Exchange Stabilisation Fund (ESF) to help bolster Pakistan’s foreign exchange reserves, Pakistan and the United States on Monday discussed opportunities to further strengthen financial cooperation, promote investment and facilitate financing for commercially viable projects in the country.
Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, met US Chargé d’Affaires to Pakistan Natalie Baker at the Finance Division to discuss Pakistan-US economic relations and opportunities for further strengthening bilateral economic cooperation. Top official sources confirmed to The News that both sides made progress on all other fronts except for Islamabad’s request for the provision of $10 billion under ESF on the pattern of Argentina. Pakistani high-ups are expecting that Washington may set aside $2-$2.5 billion after hectic lobbying and engagement, but so far there has been a cold shoulder from the US side.
According to a finance ministry statement, the finance minister briefed the Chargé d’Affaires on his recent visit to Washington, where he held meetings with the US secretary of the treasury, senior officials of the International Monetary Fund (IMF), the US International Development Finance Corporation (DFC) and the US Export-Import Bank (EXIM).
He highlighted the constructive engagement with US institutions and discussed opportunities to further strengthen financial cooperation, promote investment and facilitate financing for commercially viable projects in Pakistan.
The minister also briefed the Chargé d’Affaires on Pakistan’s recent engagement with the Office of the United States Trade Representative (USTR) on the Pakistan-US reciprocal trade framework. He said considerable progress had been made in the discussions and reiterated Pakistan’s interest in advancing the framework on a mutually beneficial basis through enhanced market access, greater export opportunities and increased bilateral trade.
Senator Aurangzeb also discussed Pakistan’s engagement with international capital markets and efforts to diversify its financing sources. He highlighted the government’s focus on strengthening foreign exchange reserves, improving the sovereign credit profile and accessing longer-term financing instruments to support economic stability and sustainable growth.
The meeting also explored greater participation by US financial institutions, including the DFC, in Pakistan’s investment landscape. The finance minister stressed the need to identify specific, investment-ready projects and develop appropriate financing structures to facilitate greater participation by US companies and financial institutions.
The two sides exchanged views on a range of sectors, including ports and logistics, energy, telecommunications, digital technology and artificial intelligence. The finance minister highlighted the government’s efforts to create an enabling environment for private-sector investment and welcomed growing interest from US companies and investors.
Ms Baker appreciated Pakistan’s efforts to navigate the recent regional conflict and its economic implications, particularly rising energy prices, while maintaining economic and financial stability.
The finance minister briefed her on measures taken to manage the evolving situation, including the introduction of a daily petroleum price revision mechanism aimed at aligning domestic prices more closely with international market conditions. He reiterated the government’s focus on fiscal discipline, strengthening foreign exchange reserves, promoting exports and sustaining economic growth.
The finance minister acknowledged the constructive role of US partners and reaffirmed Pakistan’s commitment to facilitating investment, improving the business environment, pursuing structural reforms and promoting export-led growth.
Ms Baker reaffirmed US support for Pakistan’s economic reform agenda and appreciated the government’s efforts to stabilise the economy amid challenging circumstances. She expressed continued US interest in strengthening bilateral trade, investment and economic cooperation, particularly through greater participation by US companies in key sectors of Pakistan’s economy.
