Pakistan and development agencies seek new financing and crisis recovery

During the 2026 IMF-World Bank Group Annual Meetings in Bangkok, Pakistan and international development organizations held discussions regarding economic stability and crisis recovery.

Pakistan’s Finance Minister Muhammad Aurangzeb met with the IMF and various financial institutions to explore financing options aimed at extending debt maturities and reducing reliance on expensive short-term borrowing. Proposed strategies include Sukuk issuances, Panda bonds, debt swaps, and the potential tokenization of Eurobonds. The government aims to diversify financing sources and attract investment while maintaining fiscal consolidation and improving sovereign credit ratings.

Separately, the Islamic Development Bank (IsDB) Group and the United Nations Development Programme (UNDP) discussed strengthening resilience in crisis-affected member countries. The IsDB is exploring Shariah-compliant solutions and Sukuk investments through collaborations with entities like Gulf International Bank to support development financing. This follows the IsDB’s approval of a $75 million facility to support 32 fragile and conflict-affected member countries facing natural disasters.