Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb meets IFAD President, discusses agricultural transformation, partnership plan

Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb on Thursday held a meeting with International Fund for Agricultural Development (IFAD) President Alvaro Lario and discussed Pakistan’s agricultural transformation agenda and plans to expand development cooperation

ISLAMABAD, (UrduPoint / Pakistan Point News - 17th Apr, 2026) Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb on Thursday held a meeting with International Fund for Agricultural Development (IFAD) President Alvaro Lario and discussed Pakistan’s agricultural transformation agenda and plans to expand development cooperation.

The meeting was held on the sidelines of the World Bank-IMF Spring Meetings 2026, where the minister appreciated that Pakistan is currently IFAD’s largest core borrower, with the most extensive programme of work across any single country in IFAD’s portfolio, said a news release here on Thursday.

Senator Aurangzeb underscored that agriculture remains a national priority for Pakistan, while candidly noting that the country continues to under perform relative to its potential in terms of yields, productivity, and value chain development.

Highlighting the prime minister’s focus on agricultural transformation, he outlined key initiatives, including induction of new leadership, training of young graduates in modern agricultural practices through international exposure, and deregulation of key commodity sectors.

He informed the IFAD President that end-to-end deregulation of the sugar sector has already been approved, while the wheat sector is also being liberalized, with the federal government stepping back from procurement.

Senator Aurangzeb emphasized the importance of improving financial access for smallholder farmers and addressing critical gaps in the agricultural value chain, particularly in relation to post-harvest losses and the need for investment in storage infrastructure.

He also drew attention to the risks posed by the ongoing global crisis to fertilizer supply, highlighting its potential implications for agricultural productivity.

Senator Aurangzeb appreciated IFAD’s evolving business model, particularly its shift from traditional sovereign lending towards greater engagement with the private sector through innovative use of its balance sheet.

Both sides agreed on the need for a more structured and scaled-up partnership, including the possibility of bringing in multilateral partners such as the Asian Development Bank (ADB) and the World Bank as co-financiers to enhance the impact of IFAD’s interventions.

The minister proposed a ground-level engagement between IFAD and the Prime Minister’s Agricultural Task Force to better align ongoing programmes with Pakistan’s national priorities.

In a separate meeting with Deputy Managing Director of the International Monetary Fund (IMF) Nigel Clarke, the Minister briefed him on Pakistan’s external financing position, implementation of the IMF-supported programme, and the broader economic outlook, noting that key indicators remain broadly on track.

Senator Aurangzeb informed that current account performance has been stronger than expected, supported in part by robust remittance inflows during the month of Ramadan. He noted that foreign exchange reserves are being reinforced through recently announced financial support from the Kingdom of Saudi Arabia, including deposit rollover arrangements.

He outlined Pakistan’s strategy to diversify its financing sources, including plans to access international capital markets through instruments such as an inaugural Panda bond, Eurobond issuances, and local-currency financing to mitigate foreign exchange risks.

Senator Aurangzeb appreciated Clarke’s positive assessment of Pakistan’s programme implementation and financing strategy, particularly the emphasis on developing multiple funding avenues to enhance resilience.

Both sides agreed that regional and geopolitical shocks may persist longer than anticipated, underscoring the importance of maintaining exchange-rate flexibility and preserving fiscal space, rather than pursuing growth through unsustainable public borrowing.

He also welcomed the forthcoming visit of the IMF Mission team to Pakistan next month to review the budget and other programme-related matters.

Meanwhile, the minister also held a meeting with senior representatives of Rothschild & Co, where he briefed the delegation on Pakistan’s active plans to re-access international capital markets after a gap of four years.

He outlined that the instruments under consideration include Eurobonds, a Panda bond, and dollar-settled rupee-linked transactions, as part of a diversified financing strategy.

Senator Aurangzeb informed participants that the proposed Panda bond issuance is at an advanced stage, with formal regulatory approval expected imminently.

He appreciated Rothschild & Co.’s advice on pursuing a Liability Management Operation (LMO) as a strategic tool to help compress Pakistan’s yield curve and strengthen market confidence.

Both sides agreed on the importance of developing a robust pipeline of blended finance transactions in collaboration with multilateral development institutions to reduce overall borrowing costs.

The minister also highlighted the climate finance support committed by the World Bank Group under the 10-year Country Partnership Framework (CPF).

Concluding the meeting, Senator Aurangzeb appreciated Rothschild & Co.’s offer of advisory support across the full spectrum of Pakistan’s capital market re-engagement, including sovereign bond issuance, liability management operations, blended finance structuring, and sovereign rating advisory.

The minister also held a meeting with Dr. Pan Gongsheng President of the People’s Bank of China (PBOC), where he expressed appreciation for China’s continued support for Pakistan at the International Monetary Fund (IMF), particularly within the IMF Executive Board.

Senator Aurangzeb informed Dr. Pan that Pakistan has successfully concluded a Staff-Level Agreement with the IMF for the third review under the Extended Fund Facility (EFF) and the second review under the Resilience and Sustainability Facility (RSF), with approval by the IMF Executive Board expected shortly.

He also provided an update on Pakistan’s plans for its inaugural Panda bond issuance and requested expedited approval from the National Association of Financial Market Institutional Investors (NAFMII).

He apprised the PBOC President that Pakistan has recently met its Eurobond repayment obligations and has received additional financial support from the Kingdom of Saudi Arabia.

Senator Aurangzeb highlighted the immediate economic impact of the ongoing regional conflict, noting that the government has activated targeted subsidies and demand management measures to mitigate its effects.

The meeting concluded with Dr. Pan extending an invitation to the Finance Minister to visit Beijing in the near future.