Pakistan calls for reform of global financial system — The Express Tribune
In Bangkok, Thailand, Pakistan called for reforming the international financial architecture ahead of its chairmanship of the Group of 24 developing countries. Finance Minister Muhammad Aurangzeb stated the country’s position at a meeting of G-24 finance ministers and central bank governors held on the sidelines of the IMF and World Bank Annual Meetings. The Express Tribune reports.
Aurangzeb, who currently serves as the first deputy chair of the G-24, outlined three priorities for the group: to put development back at the center of the international financial system, make the Bretton Woods institutions more representative and responsive to countries’ needs, and build a development-oriented financial architecture.
Support for countries during reforms
According to the minister, reform must provide timely assistance to countries undertaking difficult transformations while also facing external shocks beyond their control. He also said that Pakistan, as the future G-24 chair, would work to strengthen the group’s collective influence so that the voice of the Global South delivers concrete results.
At investor meetings organized by Jefferies International and Barclays, the Pakistani delegation discussed improvements in fiscal and external balances, primary surpluses, growing reserves, rating upgrades and restored access to capital markets. Topics included the IMF-supported program, debt management, sukuk, further panda bond issuances and tokenization.
More current news is available on the UA.News Telegram channel Telegram.
Diversification of borrowing
Aurangzeb told Nikkei Asia that Pakistan would continue to diversify its sources of financing. He suggested the possibility of new yuan-denominated bonds and consideration of issuing yen-denominated samurai bonds, while emphasizing that the country does not seek to increase its total external debt.
In mid-May, Pakistan issued its first panda bonds worth 1.75 billion yuan, or $261 million, under a 7.2 billion yuan program. Partial guarantees were provided by the Asian Development Bank and the Asian Infrastructure Investment Bank. The minister said that returning to capital markets should help improve the structure of external debt without increasing its overall volume.
Pakistan has been an IMF member since 1950 and is in its 25th program with the fund. According to the publication, as of Monday, the country owed the IMF about $10.5 billion.
