Pakistan explores $1.5 billion financing proposal backed by World Bank, MIGA guarantees

Profit reported that Finance Minister Muhammad Aurangzeb welcomed a plan to pair a World Bank policy-based guarantee alongside coverage from the Multilateral Investment Guarantee Agency. The arrangement could draw about $1.5 billion in financing on competitive terms, though the amount depends on the guarantee envelope and deal structure. The talks were held alongside the 2026 World Bank Group and IMF Annual Meetings in Bangkok, with Alvarez & Marsal taking part.

Aurangzeb stressed that the current Development Policy Operation could be used, sparing the government the time a new framework would take. He backed further study of the proposal by the Finance Division, the Economic Affairs Division and the World Bank Group. Advisory work tied to privatising the DISCOs was also raised.

Separately, a Lazard team joined talks where Aurangzeb covered mining investment, funding diversification and the sovereign credit outlook, aiming to move closer to a BB rating. He pointed to a $3 billion Eurobond sold in September, planned Sukuk and Panda bond issues, and foreign currency reserves near $21.6 billion. Alongside the State Bank governor, he also met a US Treasury under secretary to review energy supply during the regional conflict, export growth and possible EXIM Bank financing.