Pakistan seeks global finance overhaul

Pakistan has pressed for an overhaul of the global financial system as it prepares to assume the chairmanship of the G-24, a grouping of developing nations. The Express Tribune reported that Finance Minister Muhammad Aurangzeb, speaking as First Vice-Chair in Bangkok, outlined three priorities. He listed three aims: placing development at the centre of the international financial order, making the Bretton Woods bodies more inclusive and responsive, and creating a framework geared to developing economies.

At investor roundtables with Jefferies International and Barclays, the minister highlighted stronger budget and external positions, back-to-back primary surpluses, bigger reserves and upgraded ratings. He also flagged a busy pipeline of IPOs, and said overseas investors were keen on electricity distribution firms and airport outsourcing. Speaking to Nikkei Asia, he said Pakistan will keep diversifying funding, possibly through yuan and yen bonds, and described the 1.75 billion yuan Panda bond ($261 million) as more than a one-time deal. He added that the government does not want to enlarge external debt.

Meetings with the Saudi Fund for Development and the International Finance Corporation covered refinery upgrades and small-business financing. The minister also restated his backing for Reko Diq and said the National Tariff Policy would stay intact. Since joining the IMF in 1950, Pakistan has owed the fund about $10.5 billion as of Monday, and the minister argued that the programme's reforms would bring sustainability.