Finance Minister Muhammad Aurangzeb met with China Deputy Finance Minister Liao Min in Washington and sought Beijing’s support for Pakistan’s membership in BRICS’ New Development Bank (NDB), the Ministry of Finance said on Friday.
The meeting was held on the sidelines of the plenary meetings of the International Monetary Fund (IMF) and World Bank (WB) in Washington, DC, where Aurangzeb had arrived on Sunday on a six-day trip from Oct 13 to 18.
NDB — established in 2015 by the BRICS — is a multilateral development bank aimed at mobilising resources for infrastructure and sustainable development projects in BRICS, as per their website. In February, the Economic Coordination Committee (ECC) of the cabinet had approved[1] Pakistan’s membership in the NDB.
In a statement issued today, the ministry said, “Aurangzeb sought China’s support for Pakistan’s membership in the NDB and welcomed enhanced investment from Chinese enterprises in key sectors, including information and communication technology, agriculture, industry, and minerals.”
The minister briefed Min on the staff-level agreement[2] reached with the IMF last week, terming it “external validation of the government’s ongoing economic reform agenda”.
The pair also discussed “latest developments[3] regarding the issuance of the Panda Bond in the Chinese market”.
“The finance minister expressed gratitude to the office of the executive director [at the] IMF for extending full support to Pakistan during recent Board meetings,” the statement added.
Aurangzeb also extended an invitation to the Chinese official to visit Pakistan “at a mutually convenient time”.
Formerly the BRICS Development Bank, NDB was set up by founding members — Brazil, Russia, India, China and South Africa — to support public or private projects through loans, guarantees, equity participation and other financial instruments.
NDB is headquartered in Shanghai, China and has regional offices in other member states. India originally proposed that the bank simplify mutual settlement and lending operations among BRICS countries and reduce dependence on the US dollar and the euro.
Aurangzeb meets US congressman
The finance minister also met with US Congressman French Hill, who is the chairman of the US House Financial Services Committee.
As per the finance ministry, the pair discussed avenues for “strengthening Pakistan-US economic and financial cooperation, with particular emphasis on the digitisation of financial services, development of the new economy, mineral sector collaboration, and broader partnerships in information technology”.
“Both sides expressed interest in enhancing bilateral engagement to promote sustainable economic growth and innovation-driven collaboration between Pakistan and the United States,” the statement added.
Auragazeb also held meetings with representatives from Bangladesh, Japan and attended seminars arranged by the World Economic Forum (WEF) and JP Morgan.
In his meeting with Japan Bank for International Cooperation (JBIC) Governor Nobumitsu Hayashi, he welcomed JBIC’s commitment to join the Reko Diq lender group.
He reassured Hayashi that “the government attaches high importance to ensuring the security and confidence of foreign investors”.
Meanwhile, in a meeting with Special Envoy to the Hon’ble Chief Adviser of Bangladesh Lutfey Y Siddiqi, the minister underscored Pakistan’s commitment to “fostering closer regional economic cooperation.”
The finance minister has held a series of meetings during his six-day visit, which is set to conclude tomorrow.
On Thursday, he met[4] Saudi Finance Minister Mohammed bin Abdullah Al-Jadaan, where Aurangzeb apprised him of the privatisation process of the Pakistan International Airlines (PIA) and key airports.
The two finance ministers also reviewed the growing trade and investment relations between the two countries.
Later in the day, during a select gathering of scholars and economists at the Atlantic Council in Washington, the minister discussed[5] Pakistan’s approach to economic reform, disaster response and private-sector-led growth.
He also met an S&P Global team, welcoming its recent ratings[6] action and noting that the three major international agencies are now aligned.
He briefed the team on recent fiscal, monetary and external-sector developments and progress under the government’s reform programme.