Finance minister hints at new IMF loan even as the current program continues. Muhammad Aurangzeb spoke with international media in Washington, D.C.. He confirmed that Pakistan expects a $1.3 billion tranche from the IMF very soon. That money will help shore up foreign exchange reserves. Reserves currently cover only 2.8 months of imports. The minister says no need exists to modify the existing program right now. But he left the door wide open. Pakistan may approach the Fund again if economic conditions weaken.

The government reaffirms its commitment to paying external debts on time. Aurangzeb says Pakistan explores all funding options. Those include Eurobonds, Sukuk, and commercial borrowing. Remittances offer brighter news. They should reach $41.5 billion in the current fiscal year. Economic growth will stay close to 4 percent. Rising oil prices from the Middle East conflict add pressure. The government considers building strategic petroleum reserves. It also signals a faster shift toward renewable energy.

A major highlight involves Pakistan’s first Panda Bond. The initial issuance will reach $250 million. The broader program could hit $1 billion. The Asian Development Bank and the Asian Infrastructure Investment Bank will support this initiative. Finance minister hints at new IMF loan again during his meetings. He sat down with senior IMF officials including Jihad Azour. He also met the US Treasury Department, the Saudi Fund for Development, and Mastercard. Each conversation builds a safety net. Pakistan does not want a crisis. It wants options. And the minister just made those options very clear.