Finance Minister Muhammad Aurangzeb met his Saudi counterpart on the third day of his ongoing US visit, the finance ministry said on Thursday, adding that the former briefed the latter about the privatisation process of the Pakistan International Airlines (PIA) and key airports.

The meeting was held on the sidelines of the plenary meetings of the International Monetary Fund (IMF) and World Bank (WB) in Washington, D.C., where Aurangzeb arrived on Sunday on a six-day trip.

A foreign ministry statement issued today said Aurangzeb continued a series of high-level meetings in the US capital, including his engagement with Saudi Finance Minister Mohammed bin Abdullah Al-Jadaan.

“He apprised his Saudi counterpart of the ongoing privatisation process of Pakistan International Airlines (PIA) and key airports, underscoring the government’s resolve to attract strategic investments through transparency and efficiency,” it added.

The development comes after a parliamentary committee was informed last month that the PIA Corporation Limited was expected to be privatised by November this year. The national flag carrier’s privatisation is a key condition under the $7bn IMF bailout package approved for Pakistan.

The planned sale of the PIA would mark the country’s first major privatisation in about two decades, with divestment of loss-making state firms a central plank of last year’s bailout.

Regarding the said bailout package, Aurangzeb reaffirmed during his meeting with Al-Jadaan that Pakistan remained steadfast in pursuing economic reforms under the IMF programme to ensure long-term macroeconomic stability, the finance ministry statement said.

It added that the two finance ministers also reviewed the growing trade and investment relations between the two countries.

Moreover, the statement said, the two ministers agreed that institutions such as the International Finance Corporation (IFC) and the Multilateral Investment Guarantee Agency (MIGA) could play a vital role in mobilising private sector investments in Pakistan.

“Aurangzeb also sought Saudi support for infrastructure development projects, emphasising Pakistan’s commitment to fostering a deeper economic partnership with the kingdom,” it said.

In a post on X, Al-Jadaan said, “We further explored opportunities to deepen cooperation and discussed topics of mutual interest.”

Pakistan working on ‘number of areas’ for export-led growth: Aurangzeb

Finance Minister Muhammad Aurangzeb on Thursday said that Pakistan is working in a “number of areas” to foster export-led growth and not rely on imports.

According to the Pakistan Bureau of Statistics, Pakistan exported $2.5 billion worth of goods and $671 million in services in September. Imports were worth $5.9bn, however.

Speaking at an event hosted by the Atlantic Council in Washington DC for IMF-World Bank Week, Aurangzeb noted that Pakistan had an import-driven economy and there had been a deliberate attempt to prioritise exports through projects like Reko Diq.

“Previously, because it has been an import-dependent economy for the longest time … we get into a balance of payment problem and run back to the lender of the last resort,” he explained.“We are very deliberate this time around that we think through the export-led growth discussion, so we don’t get into that situation.”

Aurangzeb noted two aspects of prioritising exports: the environment and enabling factors, such as taxation, energy and financing costs and tariffs.

“We are working pretty hard, especially on the power side, to go for tariff rationalisation by bringing down circular debt, but also [through] governance and handing over the distribution companies to the privatisation side,” the minister said.

“There was a huge amount of debate (about the tariff bit) and there were two schools of thought: one was that if you start liberalising, then imports will go haywire, even industry that’s there in Pakistan will further lead to deindustrialisation.

“There was another school of thought, which says that even in Southeast Asia, all of these issues were there in the late 1990s and they did it and therefore, this can be an East Asia moment for Pakistan. Quite frankly, we have gone with that East Asia view.”

Aurangzeb spoke about “bold reforms” over the next four to five years in bringing customs and regulatory duties down. He mentioned starting with raw materials and intermediate goods, which would “help exporters to bring in [revenue]”.

“Of course, there is a gestation period, but it is an important enabler from that perspective,” he said. “It’s not just about all of this, it’s about opening other corridors, which we have now started with the GCC (Gulf Cooperation Council) … with the central Asian republics in terms of the geographical corridors, also obviously diversifying into different areas.”

Aurangzeb noted that the textile sector remains the “main base” and that IT services would play a key role.

“Going forward, when projects like Reko Diq come through … that’s going to be a real game changer,” Aurangzeb said. “The first year of Reko Diq’s commercial operations was about $2.8bn in exports — that’s 10 per cent of our export base today.

“We are working on a number of areas to actually get export-led growth, which has to be led by the private sector, no two ways about it.”

Aurangzeb invited proposals from the business community to further cement Pak-US ties

Apart from meeting his Saudi counterpart, Aurangzeb also interacted with leading Pakistani entrepreneurs over a working dinner hosted by Ambassador Rizwan Saeed Sheikh at Pakistan House in Washington DC.

Aurangzeb invited proposals from the business community to further cement Pak-US ties, the ministry said. “The participants assured full support towards translating the government’s economic vision into reality.”

The minister briefed the participants about the country’s economic outlook, including macroeconomic stability and structural reforms. He highlighted streamlining of regulatory processes, improving the taxation system, and addressing issues related to energy, state-owned enterprises and privatisation.

Aurangzeb also highlighted that Pakistan’s improved credit rating by renowned global agencies has “contributed to reviving confidence of the business community”, the ministry said.

Other engagements

Aurangzeb also held other meetings earlier today, the finance ministry said, adding that the “engagements focused on reinforcing Pakistan’s commitment to economic reforms, exploring new avenues for international investment, and strengthening bilateral financial cooperation”.

In a key meeting with US International Development Finance Corporation (DFC) Chief Executive Officer Benjamin Black, he “highlighted significant investment opportunities within Pakistan’s oil and gas, mines and minerals, agriculture, IT and pharmaceutical sectors”.

The finance minister also underscored the consensus at the leadership level to enhance trade and investment ties, welcoming the DFC’s interest in facilitating private sector-led funding for projects in Pakistan, the finance ministry statement said.

Separately, he also met Azerbaijan’s first deputy finance minister, Anar Karimov, reaffirming strong economic and strategic ties between the two countries, the statement added.

In the meeting, “he congratulated Azerbaijan on successfully hosting COP29 and highlighted the Pakistan-Azerbaijan Preferential Trade Agreement (January 2025) and Transit Trade Agreement (December 2024) as key platforms to diversify bilateral trade beyond oil and rice into textiles, pharmaceuticals, chemicals, machinery, and agricultural products”.

During his meeting with MIGA Executive Vice President Hiroshi Matano, Aurangzeb expressed “appreciation for the agency’s support in ongoing arbitration matters and reaffirming Pakistan’s commitment to safeguarding both investor confidence and national interests”.

According to the finance ministry, Aurangzeb welcomed MIGA’s proposal for a short-term trade finance facility to ensure access to “critical imports” such as food, fertiliser, energy and essential machinery, and emphasised the importance of its timely implementation.

He also acknowledged MIGA’s continued support for Pakistan’s power transmission and distribution sectors, the statement added.

The finance minister also attended the Borrowers’ Forum Roundtable, where he discussed the “crucial balance between servicing high debt obligations and financing essential social sector investments”, the statement said.

At the meeting, he commended the establishment of the forum as a “valuable platform for collective action, knowledge sharing, and policy coordination among debtor nations”. The statement further said that he also stressed the importance of improved debt management, enhanced technical capacity and better access to sustainable finance for climate resilience and infrastructure development.

The minister also met with members of the Pakistan Bank Fund Staff Association (PBFSA), the statement said, adding that he briefed them on recent fiscal, monetary and external sector progress and referenced the country’s upgraded sovereign credit ratings.

“He reaffirmed Pakistan’s commitment to fiscal responsibility, energy reforms, privatisation, social protection, and inclusive green growth while responding to participant queries.”

Later, the statement detailed, Aurangzeb held a “productive meeting” with the senior management of Standard Chartered Bank, acknowledging the long-standing partnership between the Bank and Pakistan.

“During the discussions, the minister highlighted the external validation of the country’s ongoing economic reforms by international rating agencies. He briefed the team on Pakistan’s recent Panda Bond issuance and plans to tap international capital markets through Eurobonds and International Sukuk.

“The meeting also covered trade financing facilities, with the minister requesting the bank to share additional proposals for consideration to further strengthen collaboration.”

The finance minister also attended a session of the Coalition of Finance Ministers for Climate Action (CFMCA), held discussions with British economist Stefan Dercon and participated in a media interaction with the Wall Street Journal.

Yesterday’s address at Citi Macro Forum; ministerial meeting with IMF MD

He also addressed global investors at the Citi Macro Forum, where he, alongside the finance secretary and State Bank of Pakistan governor, presented a “comprehensive overview of the positive developments on Pakistan’s fiscal, monetary, and external fronts”.

He attributed the current economic momentum to effective stabilisation measures, structural reforms and prudent monetary management, noting the successful negotiation of a staff-level agreement with the IMF, the statement said.

Yesterday, Aurangzeb joined finance ministers and central bank governors from the MENAP (Middle East, North Africa, Afghanistan and Pakistan) region in a meeting with IMF Managing Director Kristalina Georgieva.

As a lead speaker, he underscored “Pakistan’s achievement of macroeconomic stabilisation and welcomed the staff-level agreement with the IMF. He reaffirmed the government’s commitment to advancing reforms in taxation, energy, state-owned enterprises, and privatisation”.

Moreover, he highlighted Pakistan’s “digital transformation and tariff policy aimed at enhancing competitiveness and exports”, while inviting international investment in key sectors including mining, digital infrastructure, agriculture, and pharmaceuticals, the finance ministry statement said.