WASHINGTON: Pakistan expects around four per cent economic growth in the current fiscal year while preparing to re-enter international capital markets after a gap of several years, Finance Minister Muhammad Aurangzeb said on Thursday.

The minister, who is in Washington to attend the annual meetings of the International Monetary Fund (IMF) and the World Bank, highlighted Pakistan’s efforts to balance external financing needs, stabilisation efforts and structural reforms, under close engagement with multilateral institutions.

Speaking on Fox Business’s ‘Mornings with Maria’, the finance minister said macroeconomic indicators showed gradual improvement in external stability, supported by rising remittances, a current account surplus and improving supply-side conditions.

“We are still expecting growth of around 4pc for this fiscal year,” he said.

Eurobonds, panda bonds in pipeline

He added that external reserves were expected to improve further, with Pakistan on track to meet key fiscal and external targets. “We are very clear we are going to meet our fiscal targets and also our external reserves, which are now going to be close to three months of import cover,” he said.

Mr Aurangzeb cautioned that the macroeconomic outlook remained exposed to external shocks. “It’s all a function of the duration, intensity,” he said, referring to the impact of global disruptions on inflation and growth.

Separately, International Monetary Fund (IMF) Managing Director Kristalina Georgieva praised Pakistan’s reform progress and macroeconomic stabilisation under the ongoing programme.

“Strong programme implementation has helped Pakistan maintain macroeconomic stability and build confidence,” she said on X, adding that “sound policies and deeper structural reforms remain key to sustaining growth and raising welfare for all Pakistanis”.

The finance ministry, in a statement on the interaction, said the IMF chief “appreciated Pakistan’s continued progress on economic reforms” and described her remarks as reflecting international confidence in Pakistan’s reform trajectory.

Officials said the finance minister also met IMF First Deputy Managing Director Dan Katz, briefing him on the economic impact of external shocks and policy responses. Pakistan is currently engaged in programme reviews under the Extended Fund Facility (EFF) and the Resilience and Sustainability Facility (RSF), which continue to anchor macroeconomic policy coordination with the Fund.

In a separate meeting with Fitch Ratings, the ministry said the agency had recently reaffirmed Pakistan’s sovereign rating. Mr Aurangzeb “appreciated Fitch’s continued engagement with and assessment of Pakistan’s credit profile, and thanked the agency for reaffirming Pakistan’s B- credit rating”.

He also highlighted Pakistan’s financing roadmap, stating that the country has secured external financing arrangements to meet fiscal requirements and is pursuing diversified market access.

During discussions with JP Morgan Chase, Mr Aurangzeb signalled that “Pakistan is preparing to re-enter international capital markets after an absence of approximately four years.”

The finance minister also met Asian Development Bank President Masato Kanda and thanked him for his support in structuring Pakistan’s panda bond.

Officials said Pakistan’s inaugural panda bond issuance is targeted for May, as part of efforts to restore regular access to global capital markets.

Published in Dawn, April 17th, 2026