Finance Minister's important negotiations with global financial institutions; discussion on credit rating and investment

Muhammad Aurangzeb held meetings with delegations of JP Morgan, Sharjah Islamic Bank and IMF

Islamabad: Finance Minister Muhammad Aurangzeb has held detailed discussion on several important topics including credit rating, investment in important negotiations with global financial institutions.

Finance Minister met with delegation of JP Morgan, in which economic situation of Pakistan, credit rating and financial strategy were discussed.

He highlighted progress under IMF program, increase in foreign exchange reserves and re-access to global capital markets and reiterated government's commitment for structural reforms.

According to declaration of meeting, discussion was held on target of taking Pakistan to double B credit rating level, while JP Morgan has offered analytical support regarding important economic indicators and institutional improvement. In addition, various sources of financial resources including Sukuk, rupee-denominated and dollar-payable bonds, Panda Bonds and possible tokenization of Eurobonds were also discussed.

Finance Minister Muhammad Aurangzeb appreciated JP Morgan's advice regarding timely financial transactions, investor relations and underwriting support for private placement in context of risks associated with global interest rate.

In declaration it was told that on this occasion possibilities of financial support with MIGA guarantee, DPR-based financial transaction with IFC support, financial support in rupees and possible conversion of loans were also reviewed. In addition, stable flow of remittances, regional risks, debt swaps, credit support and guaranteed financial arrangements were also discussed.

Meanwhile Finance Minister met with delegation of Sharjah Islamic Bank, in which financial sources, investment opportunities and bank's participation in issuance of Sukuk were discussed.

Muhammad Aurangzeb highlighted improvement in financial and external sector indicators, increase in foreign exchange reserves, improvement in credit rating and progress under IMF program. According to declaration of this meeting, detailed discussion was held on possible issuance of Sukuk, rupee-denominated and dollar-payable financial sources, further issuance of Panda Bonds and possibilities of tokenization of Eurobonds.

In addition, financial support with MIGA guarantee and increasing cost of obtaining financial resources at global level were also discussed.

On this occasion delegation of Sharjah Islamic Bank reiterated support for cooperation with Pakistan and expressed willingness to participate in issuance of Sukuk. In meeting Finance Minister Muhammad Aurangzeb highlighted investment opportunities in sectors of refineries upgradation, privatization of power distribution companies and outsourcing of airport management.

In declaration it has been told that discussion was also held on forming standard reference benchmarks for capital markets through issuance of securities and increasing provision of loans for business enterprises, small and medium-sized businesses and agricultural sector.

On other hand Finance Minister met with Mr. Jihad Azour, Director Middle East and Central Asia Department of IMF, in which country's economic performance and reforms were discussed.

According to declaration, in meeting revenue, inflation, economic growth and current account situation were reviewed. In addition, despite regional conflict, Pakistan's economic resilience, energy procurement, advance preparations for winter season and measures regarding abundant availability of fertilizer for food security were also discussed.

On this occasion measures to strengthen foreign exchange reserves, reduction in liabilities related to forward foreign exchange, extension of debt repayment period and reduction of external payment requirements were reviewed. Finance Minister Muhammad Aurangzeb reiterated commitment to maintain primary fiscal surplus, reduce public debts and advance tax reforms that strengthen economic growth with protection of social expenditures.

In declaration it was told that in meeting discussion was held on strengthening economic resilience and credibility through privatization, greater involvement of private sector and export-based growth. On this occasion importance of maintaining continuity of reforms, political commitment and effective communication was emphasized, while interrelationship of economic stability and national security was also highlighted.