Aurangzeb told Bloomberg in Washington on Monday that "whatever we need to cover will be a combination of many sources," including bilateral lenders and commercial possibilities. He stated, "We're looking at all options," but he would not elaborate.
As of March 27, the nation's foreign exchange reserves were $16.4 billion, sufficient to finance over three months' worth of imports.
The finance minister expressed confidence in Pakistan's capacity to repay its creditors, stating that the government had strong fiscal and foreign exchange buffers prior to the US-Israeli attack on Iran at the end of February.
"We're very committed to pay and ensure there are other resources available to keep our reserves at the right place," he stated.
Regarding whether talks about financial support are still going on with Saudi Arabia and China, Aurangzeb declined to answer. According to persons familiar with the situation, Bloomberg News previously reported that such discussions were occurring.
Returning to International Markets
Along with other central bankers and heads of economies, the finance minister is in Washington this week for the World Bank and IMF spring meetings. Discussions about global trade imbalances and artificial intelligence would have taken place prior to the Middle East crisis. The gathering will now be dominated by the effects of the fighting and the significant shock to the oil and supply that followed.According to Aurangzeb, Pakistan still intends to make a comeback to international bond markets this year by issuing eurobonds for the first time in four years.He added, "It will be a combination of eurobonds, Islamic sukuks, and dollar-settled rupee-linked bonds. The nation will proceed with requests for proposals in the coming days to appoint lead managers for all three types of issuance."As we move forward, we believe that now is the ideal time to truly investigate all of these choices," he stated.
According to the minister, the Asian Development Bank and Asian Infrastructure Investment Bank are handling the credit enhancement as the government gets ready for its first-ever yuan-denominated debt, or Panda bonds, in the second quarter. According to him, the first sale will bring in $250 million of the $1 billion total.
Pakistan anticipates that the executive board of the International Monetary Fund will convene shortly to approve the most recent installment of a $7 billion bailout program. When disbursements from the so-called climate Resilience and Sustainability Facility are added, the country will have access to nearly $1.3 billion.
According to the minister, Pakistan is not currently seeking to request an expansion or acceleration of the initial program in response to the oil shock.According to the minister, Pakistan is not currently seeking to propose an expansion or acceleration of the initial program due to the oil shock."We will talk to the IMF if we see any vulnerability arising in the macroeconomic situation," he stated. "But at this point in time, that's not on the table."