https://arab.news/w2f49
- Launched in Washington, the platform seeks to help developing nations coordinate on debt issues
- Aurangzeb also meets IMF chief who praises Pakistan’s reform progress under $7 billion loan program
KARACHI: Pakistan’s Finance Minister Muhammad Aurangzeb on Wednesday warned that many developing nations face “acute debt distress” as he spoke at the launch of a new UN-backed Borrowers’ Platform on the sidelines of the IMF–World Bank Spring Meetings in Washington.
The Borrowers’ Platform is created by developing countries to coordinate on debt issues and strengthen their collective voice in global financial negotiations, addressing what the minister described as a “long-standing gap” in the global financial architecture.
“A large number of developing countries remain in acute debt distress, facing elevated borrowing costs and tightening global financial conditions that are constraining their ability to invest in growth and sustainable development,” Aurangzeb said, according to the finance ministry, while participating in the launch event.
“While domestic reforms remain essential and are being actively pursued, systemic constraints within the global financial architecture continue to limit the policy space available to borrowing nations,” he added.
Aurangzeb said the platform would help borrowing countries share experiences, identify emerging risks and bring greater coherence to their perspectives, while clarifying it was not intended to function as a negotiating bloc but as a voluntary, member state–led initiative focused on peer learning.
On the sidelines of the event, he met United Nations Secretary General António Guterres and thanked him for supporting the establishment of the platform, with both official discussing the global economic implications of tensions in the Middle East, particularly on food and energy security in developing countries.
Guterres lauded Pakistan’s role in promoting regional stability and expressed confidence in its continued engagement on the global stage, according to the finance ministry.
Aurangzeb also held talks with International Monetary Fund (IMF) Managing Director Kristalina Georgieva, who commended Pakistan’s progress under its $7 billion IMF program.
“Strong program implementation has helped Pakistan maintain macroeconomic stability and build confidence,” she said in a social media post, adding that sound policies and deeper structural reforms remained key to sustaining growth and improving welfare.
The finance minister also met representatives from Fitch Ratings, which recently reaffirmed Pakistan’s B- rating, and highlighted progress on IMF reviews as well as efforts to secure external financing for fiscal year 2026.
In separate meetings with Asian Development Bank President Masato Kanda and executives from JPMorgan Chase and Franklin Templeton, Aurangzeb outlined Pakistan’s strategy to return to international capital markets after a four-year gap through instruments including Panda bonds, Eurobonds, international Sukuk and ESG-linked debt.
He also briefed investors on privatization plans covering state-owned enterprises, electricity distribution companies and major airports, alongside regulatory developments in the digital asset space.
The meetings come as Pakistan looks to strengthen investor confidence, diversify financing sources and navigate global economic uncertainty amid elevated borrowing costs and external pressures.