Pakistan Seeks Investment to Support Sustainable External Financing

Prime Minister Shehbaz Sharif has invited American banks to invest in Pakistan’s infrastructure, energy, technology, and agriculture sectors as part of the country’s efforts to attract sustainable external financing through direct investment. On Friday, the International Monetary Fund (IMF) announced that Pakistan had secured significant financial assurances from China, Saudi Arabia, and the UAE, tied to a new IMF program, beyond the $12 billion in bilateral loans rolled over by these countries.

The IMF’s Executive Board recently approved a $7 billion, 37-month loan agreement for Pakistan, aimed at strengthening macroeconomic stability and addressing structural challenges. This approval released an immediate $1 billion to Pakistan.

During a meeting in New York with top American banking officials, including representatives from JP Morgan, Goldman Sachs, and others, Sharif assured them of the government’s commitment to maintaining a stable macroeconomic environment to facilitate foreign investment. He highlighted initiatives such as broadening the tax base, improving ease of doing business, and reforming state-owned enterprises.

Pakistan’s economic indicators have improved, with upgraded credit ratings from Fitch and Moody’s. Sharif also shared plans for a Sustainable Finance Framework to support the issuance of green and sustainability bonds in international markets. While Pakistan has made progress, the IMF noted that the country still faces significant economic challenges and needs further reforms.