Pakistan’s New UN-Backed Role Raises Questions as IMF Loans Keep Flowing

Pakistan, burdened with $137.55 billion in external debt and liabilities, has taken charge of a UN-backed global borrowers’ platform. With fresh IMF support also in focus, here is what its new leadership role means—and why it will not automatically bring debt relief.

Islamabad: Pakistan has assumed a leadership position in an international forum designed to strengthen the collective voice of developing countries struggling with debt. The appointment comes at a time when Islamabad continues to depend on external financial assistance, raising questions about what the country can contribute to a platform focused on improving debt management.  Pakistan’s Finance Minister Muhammad Aurangzeb took over as chair of the Governing Council of the Borrowers’ Platform in Bangkok on October 12, 2026, according to an official government statement. The UN-backed initiative brings together developing nations to exchange experiences, strengthen borrowing practices and address shared challenges associated with public debt.

The appointment places Pakistan at the head of a forum intended to improve cooperation among borrower nations. Its responsibilities include coordinating discussions on debt management, encouraging countries to share policy reforms and overseeing the platform’s priorities for 2026–27. However, Pakistan’s own financial position makes the development particularly noteworthy. The country has repeatedly turned to international lenders to manage its economic pressures, making its experience with debt both a potential source of expertise and a reminder of the challenges facing developing economies.

Pakistan’s Debt Burden Adds Context to New Global Role

Pakistan’s appointment comes amid continued efforts to secure financial assistance from the International Monetary Fund (IMF). On October 7, 2026, Pakistan reached a staff-level agreement with the IMF that could release approximately $1.21 billion, subject to approval by the Fund’s Executive Board. The country previously received a $3 billion IMF support package in 2023, helping it avert an immediate sovereign default. In 2024, it secured another IMF programme worth $7 billion, followed by a separate $1.3 billion financing arrangement focused on climate resilience.

Data from the State Bank of Pakistan showed that the country’s external debt and liabilities reached $137.55 billion at the end of March 2026. Against this backdrop, Pakistan’s new position raises an important question: can a country that has relied extensively on international financial support help other developing economies navigate similar pressures more effectively?

Its experience could provide practical insights into the difficulties of managing external obligations, negotiating financial support and implementing economic reforms. The larger test, however, will be whether the platform can turn shared experiences into better borrowing and debt-management practices.

What Is the Borrowers’ Platform?

The Borrowers’ Platform is an international initiative intended to give developing countries a permanent space to discuss borrowing-related challenges and learn from one another. The idea gained momentum at an international development-financing conference in Seville, Spain, in July 2025. The platform was formally launched in Washington on April 15, 2026, according to the UN Conference on Trade and Development (UNCTAD), which serves as its secretariat.

Participating governments can exchange policy knowledge, seek technical expertise and strengthen their ability to manage public debt. Membership is voluntary and does not require countries to pay a membership fee, according to UNCTAD. The initiative addresses a longstanding gap in international finance. While creditor countries have established mechanisms for coordinating their approaches to lending and debt-related issues, developing nations that borrow money have lacked a comparable permanent forum of their own.

At the platform’s launch in April, Penelope Hawkins, acting head of UNCTAD’s Debt and Development Finance branch, highlighted this imbalance by pointing to the Paris Club’s decades-long history as a forum for creditor countries.  The new initiative is intended to help borrower nations coordinate their perspectives and build stronger institutional capacity, rather than leave each government to confront complex debt challenges in isolation.

What Will Pakistan Do as Chair?

Pakistan’s role is not limited to presiding over meetings. As chair of the Governing Council, it is expected to help determine the platform’s priorities and guide cooperation among participating countries. The country also played a part in establishing the initiative. It served as vice-chair of a working group led by Egypt, alongside Colombia, Honduras, Maldives, Nepal and Zambia. The group helped develop the platform’s objectives, operating structure and membership framework.

According to UNCTAD, the Governing Council brings together finance ministers, central bank governors and other senior officials to establish priorities. A separate Steering Committee is responsible for technical and operational activities. The chairmanship rotates annually, with members electing a new chair each year.

Aurangzeb has said Pakistan intends to focus on improving debt-management capabilities, sharing lessons from economic reforms and exploring alternative approaches to financing development. He has also emphasised the importance of implementing agreed initiatives and measuring their outcomes. For Pakistan, the challenge will be to help participating governments move beyond discussions and develop practical approaches that can improve financial decision-making.

Can the Borrowers’ Platform Reduce Pakistan’s Debt?

One important distinction separates the platform’s objectives from direct financial negotiations. The Borrowers’ Platform is not authorised to negotiate loan conditions or debt repayments on behalf of its members, according to UNCTAD. Nor does chairing the organisation automatically entitle Pakistan to debt relief, repayment concessions or the cancellation of outstanding loans.

Instead, the initiative is designed to improve cooperation, provide access to expertise and help governments develop more effective approaches to managing their financial obligations. It will operate alongside existing debt-related arrangements rather than replace them. This means Pakistan’s leadership position should not be confused with a new mechanism for securing cheaper loans or obtaining debt write-offs. The country may be able to use its own experience to contribute to discussions about borrowing risks, economic reforms and financial sustainability. Whether those discussions lead to measurable improvements will depend on the actions taken by participating governments.

A Leadership Opportunity, but Results Will Matter

Pakistan’s appointment reflects a broader effort to give developing countries a stronger collective voice in international financial discussions. For nations facing mounting repayment obligations, limited fiscal space and continued dependence on external financing, sharing knowledge could help improve policy decisions and strengthen institutional capacity. Pakistan brings considerable experience of navigating financial crisis and seeking international assistance. That experience could prove valuable to other borrowers, provided the lessons are translated into practical and sustainable policies.

Ultimately, the chairmanship is an opportunity to influence the global conversation on debt management, not a guarantee of financial relief. Pakistan will now have to demonstrate that its leadership can help the platform deliver tangible benefits for developing countries facing similar economic pressures.