Pakistan and Citibank talk about sovereign funding.

As the government continues to collaborate with outside partners on debt management and capital market issues, Federal Minister for Finance and Revenue Muhammad Aurangzeb met with representatives from a global bank on Tuesday to discuss sovereign financing options and possible cooperation, according to an official statement.

The talks with Citibank took place while Pakistan worked to fortify its economy through a $7 billion loan program from the International Monetary Fund (IMF). The IMF has noted advancements, but it has also warned that the nation’s recovery is still precarious and that long-term stability is still at risk due to large public debt, budgetary constraints, and exposure to outside shocks.

“The meeting offered a chance to discuss sovereign financing options and explore possible paths for collaboration between the government and Citibank,”

The term “sovereign financing solutions” refers to market-related, debt-management, and financing services provided to governments.

According to the statement, the meeting was also attended by the finance minister’s staff, which is in charge of financial markets, debt management, and other pertinent policy areas.

The ministry stated, “The Finance Ministry team briefed the [bank] delegation on the Government’s ongoing work on sovereign funding programs, including preparatory work on medium-term note structures, while noting that the immediate focus remains on concluding priority transactions currently under process.”

The finance minister emphasized the importance of ongoing participation and senior-level involvement by foreign financial institutions, pointing out that Pakistan has historically been a significant market for international banks.

Additionally, his team identified ways in which the government might take advantage of Citibank’s global expertise.

Pakistan entered an IMF-supported program to stabilize the economy after experiencing a protracted economic crisis in recent years that was characterized by fiscal pressure, high debt levels, and balance-of-payments issues. According to IMF and official figures, growth has been modest, inflation has decreased from previous highs, and foreign exchange reserves have improved within the program’s terms.