Pakistan’s Finance Minister, Senator Muhammad Aurangzeb, met a delegation from Lazard in Bangkok, Thailand, on the sidelines of the World Bank Group–IMF Annual Meetings 2026. The talks focused on mining investment, ways to diversify financing and the outlook for Pakistan’s sovereign credit.
Aurangzeb welcomed proposals such as blended finance, sustainability-linked loans, guaranteed Sukuk and debt swaps, which could widen funding sources and improve borrowing terms. He pointed to the restoration of Pakistan’s access to international capital markets and to plans for further issuances, including Panda bonds.
Cost discipline and rating goals in focus
The minister stressed cost discipline, alignment with the medium-term financing strategy and early preparation to benefit from favourable market conditions. Both sides also discussed sovereign rating advisory support, policy predictability and economic resilience as steps toward the BB rating category.
Follow-up will be coordinated through the Debt Management Office and the State Bank of Pakistan. Lazard will prepare a short note setting out its recommendations.
World Bank guarantees explored with Alvarez & Marsal
Aurangzeb also met Alvarez & Marsal to discuss long-term financing backed by World Bank Group guarantees. He welcomed a plan to combine a World Bank policy-based guarantee with Multilateral Investment Guarantee Agency (MIGA) coverage to attract financing at competitive rates. The potential target is approximately US$1.5 billion, subject to the guarantee envelope and transaction structure.
He emphasized using an existing Development Policy Operation (DPO) to avoid delays linked to negotiating a new framework.
Next steps through finance and World Bank teams
He supported further work on the proposal through the Finance Division, Economic Affairs Division and World Bank Group. The meeting also touched on ongoing advisory work on the privatization of DISCOs.
