Pakistan explores $1.5bn financing through World Bank guarantees

According to Business Recorder, citing the Finance Division, Pakistan is looking at a financing package of roughly $1.5 billion backed by World Bank Group guarantees, aimed at raising funds on competitive terms. The arrangement is part of the government's effort to widen its external funding sources. Finance Minister Muhammad Aurangzeb raised the idea with Alvarez & Marsal on the sidelines of the 2026 World Bank Group and IMF Annual Meetings in Bangkok.

Aurangzeb backed pairing a World Bank policy-based guarantee with MIGA coverage, with the final target depending on the guarantee envelope and deal structure. He also urged using an existing Development Policy Operation to avoid the delays of a new framework. The Finance Division, Economic Affairs Division and World Bank Group will explore the idea further.

Separately, Aurangzeb and the SBP governor met Erin Browne of the US Treasury and highlighted a $3 billion Eurobond sold in September and reserves near $21.6 billion. Follow-up on the Lazard talks will be coordinated by the Debt Management Office and the SBP, and Lazard will also send a short note of its recommendations.