Pakistan seeks cooperation of World Bank, MIGA to get $1.5 billion financing deal
Pakistan is exploring a financing package of around $1.5 billion backed by guarantees from the World Bank and its Multilateral Investment
Guarantee Agency (MIGA) as the government seeks to secure funding at
competitive rates and diversify its sources of external financing.
The proposal was discussed by Finance Minister Muhammad Aurangzeb during a meeting with representatives of Alvarez & Marsal on the sidelines of the 2026 World Bank Group–IMF Annual Meetings in Bangkok, Thailand.
The proposed structure would combine a World Bank policy-based guarantee with MIGA coverage to attract investors, although the final financing amount will depend on the available guarantee capacity and the transaction structure.
During the meeting, Aurangzeb stressed the importance of using an existing Development Policy Operation (DPO) to avoid delays associated with negotiating a new framework. Discussions also covered the use of World Bank resources, combining budget support with guarantees and expanding investor participation.
The finance minister called for further examination of the proposal by the Finance Division, Economic Affairs Division and World Bank Group. The meeting also reviewed ongoing advisory work related to the privatisation of electricity distribution companies (DISCOs).
Pakistan Seeks to Broaden Financing Options
In a separate meeting with a Lazard delegation, Aurangzeb discussed opportunities to attract investment in the mining sector, diversify financing sources and strengthen Pakistan’s sovereign credit outlook.
The minister welcomed proposals involving blended finance, sustainability-linked loans, guaranteed Sukuk and debt swaps, saying such instruments could help widen funding options and secure more favourable borrowing terms.
Read More World
Bank acknowledges Pakistan’s improving economic stability
He noted that Pakistan had regained access to international capital markets following its $3 billion Eurobond issuance in September and was considering further issuances, including Panda bonds.
Aurangzeb emphasised that future borrowing decisions would need to remain consistent with the country’s medium-term financing strategy, with a focus on cost control and advance preparation to take advantage of favourable market conditions.
The discussions also covered sovereign rating advisory services, policy consistency and economic resilience, with both sides examining ways to support Pakistan’s progress towards the BB sovereign rating category.
Follow-up discussions will be coordinated through the Debt Management Office and the State Bank of Pakistan (SBP). Lazard also proposed preparing a brief note outlining its recommendations.
Talks with US Treasury Focus on Reforms and External Financing
Aurangzeb, accompanied by SBP Governor, also met Erin Browne, Under Secretary for International Affairs at the US Department of the Treasury, to discuss Pakistan’s economic outlook, reform agenda and external financing requirements.
The finance minister highlighted progress under Pakistan’s IMF programme, tax reforms and the achievement of primary budget surpluses for three consecutive years. He also cited foreign exchange reserves of approximately $21.6 billion.
Pakistan’s efforts to diversify its external financing were another key topic, with Aurangzeb outlining plans to use Sukuk, Panda bonds and other financial instruments alongside the country’s recent Eurobond issuance.
The two sides also discussed the potential effects of regional conflicts on energy supplies, inflation and food security, including measures to maintain supply chains and prepare for higher winter demand.
Read More World
Bank reaffirms $40 billion commitment to Pakistan under 10-year development
framework
Aurangzeb stressed that sustainable economic growth would depend on expanding exports, strengthening information technology exports, improving the competitiveness of Pakistani goods and maintaining debt sustainability.
The meeting further covered privatisation initiatives, airport outsourcing, engagement with Boeing and possible financing through the US Export-Import Bank (EXIM Bank). The finance minister expressed appreciation for continued US support for Pakistan’s economic reform and development efforts.
The discussions reflect Pakistan’s broader strategy to diversify its financing sources, attract private investment and strengthen economic stability while pursuing improved sovereign credit ratings.
Source: Profit Pakistan