KARACHI: Pakistan’s finance minister said on Tuesday the country wants to broaden trade and investment ties with the United States, especially in minerals critical to the energy transition, while also joining other vulnerable economies in urging reforms at the World Bank and International Monetary Fund (IMF).
Minister Muhammad Aurangzeb is currently in Washington to attend the IMF-World Bank Spring Meetings, where policymakers are grappling with debt distress, climate vulnerabilities and growing calls from the Global South to reshape how multilateral institutions lend and design reforms.
The IMF has acknowledged the need to tailor programs more toward pro-growth reforms and private-sector led development, particularly for repeat borrowers like Pakistan.
“We genuinely believe that there’s a win-win situation,” Aurangzeb said at the Atlantic Council, pointing to high-level US interest in Pakistan’s copper and rare earth potential. “Reko Diq is only the first one... the value addition and downstream stuff is going to be really game-changing for Pakistan.”
Aurangzeb downplayed concerns over US tariffs, saying the country saw greater opportunity in rebalancing trade and attracting strategic investment.
He reiterated a high-level delegation from Islamabad would visit Washington in the coming weeks to explore broader cooperation beyond tariffs, citing minerals, agriculture and green technology as key areas.
On multilateral reform, Aurangzeb welcomed the willingness of IMF and World Bank leaders to reassess their lending frameworks, especially in light of liquidity strains across the Global South.
“These institutions also need to have ownership and accountability at their end to really drive impact,” he said, calling for a system that allows countries like Pakistan to access flexible financing and avoid perpetual debt cycles.
He praised recent efforts to unify public and private sector arms within the World Bank and to coordinate better with other lenders like the ADB and AIIB.
IMF Managing Director Kristalina Georgieva said on Tuesday the international lending agency was not just telling countries to get their own houses in order, but was also looking at the way it does business, including conducting a review of how it designs loan programs, and determines their length and conditions.
She said the IMF was also looking at countries that have had repeated programs, such as Pakistan, Argentina and Egypt, to ensure loan programs were designed the right way.
Pakistan has been in over 20 IMF programs, including a $7 billion Extended Fund Facility finalized last year to stabilize its economy.
Aurangzeb said the government was pursuing structural reform, with a focus on climate, population, and fiscal sustainability, including efforts to broaden the tax base and digitize enforcement.
– With input from Reuters

ISLAMABAD: Pakistan’s Prime Minister Shehbaz Sharif and Turkish President Recep Tayyip Erdoğan on Tuesday called for an immediate ceasefire in Gaza, reiterating their demand for the establishment of a separate and independent state for the people of Palestine. 

Sharif is in Ankara on a two-day official visit to discuss bilateral ties between the two states, the regional situation and economic opportunities. 

Pakistan and Turkiye have both repeatedly condemned Israel for its military campaign in Gaza, which has claimed the lives of over 51,000 Palestinians since October 2023. 

“We strongly condemn the brutal killings of over 50,000 innocent Palestinians, including women and children,” Sharif said during a joint press conference with Erdogan.

“We have called for an immediate ceasefire and unhindered flow of humanitarian assistance for the Palestinian people. We renewed our call for a viable, independent and contiguous Palestinian state with pre-1967 borders and Al-Quds Al-Sharif as its capital,” he added.

Erdogan praised Pakistan for always adopting a “resolute” stance on the Palestinian issue, noting that Islamabad had given one of the strongest reactions to the ongoing “genocide” in Gaza. 

“We will continue to work together toward the establishment of an independent and sovereign Palestinian state on the basis of 1967 borders with East Jerusalem as its capital and on the basis of its territorial integrity,” the Turkish president said. 

Erdogan urged Turkish investors to develop joint business projects in Pakistan, saying that he discussed promoting mutual investments in Pakistan with Sharif and the allocation of a free economic zone for Turkish companies in the South Asian country. 

“We wish to further develop our relations in the fields of military and defense industry through joint projects,” he said. 

In a separate statement, Sharif’s office said he discussed the importance of enhancing economic collaboration with Turkiye, especially through joint ventures and bilateral investments, with Erdogan. 

The Prime Minister’s Office said Sharif highlighted opportunities for cooperation in the fields of energy and mining, joint ventures in defense and agri production. 

The PMO said Sharif also spoke about enhancing regional and bilateral connectivity to boost trade and deepen cooperation in emerging technologies such as artificial intelligence and cybersecurity.

Pakistan and Turkiye enjoy close cultural, historical and military relations which they are now expanding into the realms of trade, economy and investment as both countries seek to develop their economies.

As long-standing allies and strategic partners, Pakistan and Turkiye maintain a tradition of regular exchanges and have institutionalized leadership-level mechanisms such as the High-Level Strategic Cooperation Council (HLSCC).

The 7th session of the HLSCC was held in Islamabad on Feb 12-13 this year, and co-chaired by Sharif and Erdogan.