Pakistan, a country that narrowly avoided sovereign default in 2023, has taken charge of a United Nations-backed platform designed to give developing countries a stronger voice on international borrowing. The appointment places Islamabad at the head of a forum focused on debt management, financial cooperation and sharing economic reforms, even as Pakistan continues to depend on external financial assistance.
Pakistan’s Finance Minister Muhammad Aurangzeb accepted the chairmanship of the Borrowers’ Platform’s Governing Council in Bangkok on October 12, according to a statement from the Pakistani government. The country will guide cooperation among member nations and advance the platform’s work programme for 2026-27.
What Is the Borrowers’ Platform?
The Borrowers’ Platform brings developing countries together to exchange experiences, strengthen debt-management capacity and discuss common borrowing challenges. The UN Conference on Trade and Development (UNCTAD) serves as its secretariat.
The initiative emerged from discussions at a global development-financing conference in Seville, Spain, in July 2025. It was formally launched in Washington on April 15, 2026.
The platform seeks to address an imbalance in the international financial system: creditors have long had established mechanisms to coordinate their positions, while borrowing countries have lacked a comparable permanent forum.
Membership is voluntary and free, according to UNCTAD. Countries can share knowledge, access expert support and learn from one another’s experiences in managing public debt.
At the platform’s April launch, Penelope Hawkins, acting head of UNCTAD’s Debt and Development Finance branch, highlighted the long-established position of creditor coordination mechanisms, including the Paris Club.
Why Pakistan’s Appointment Matters
Pakistan’s chairmanship comes amid continuing pressure on its finances. The country has repeatedly sought international assistance to manage its economic difficulties and meet financial obligations.
In 2023, Pakistan narrowly avoided default after securing a $3 billion International Monetary Fund (IMF) bailout. It obtained a separate $7 billion IMF programme in 2024 and subsequently secured a $1.3 billion climate-resilience loan.
More recently, Pakistan reached a staff-level agreement with the IMF on October 7 that could unlock approximately $1.21 billion, subject to approval by the Fund’s Executive Board.
State Bank of Pakistan data cited in the report put the country’s total external debt and liabilities at $137.55 billion at the end of March 2026.
Pakistan’s experience with debt negotiations, economic reforms and external financing could provide lessons for other developing countries. However, its leadership position does not automatically change its own repayment obligations.
What Will Pakistan Do as Chair?
Pakistan was involved in establishing the platform before assuming the chairmanship. It served as vice-chair of an Egypt-led working group that included Colombia, Honduras, the Maldives, Nepal and Zambia. The group helped determine the platform’s functions, operating structure and membership rules.
According to UNCTAD, members elect a chair annually. The Governing Council, comprising finance ministers, central bank governors and other senior officials, sets priorities, while a separate Steering Committee oversees technical and operational work.
Aurangzeb said Pakistan would focus on improving debt management, sharing reform experiences and exploring innovative financing options for development. He also stressed the need to turn plans into action and measure results.
Will the Platform Reduce Pakistan’s Debt?
The chairmanship does not give Pakistan the authority to negotiate loan terms or repayment reductions for members. UNCTAD says the platform will complement existing debt arrangements rather than replace them.
That means Pakistan will not receive automatic debt relief simply because it leads the forum. Its creditors will continue to assess repayments under existing agreements.
Instead, the platform offers developing countries a space to coordinate ideas, build technical expertise and raise shared concerns about debt sustainability and development financing.
Pakistan may bring substantial experience to those discussions. But while it leads the borrowers’ table, the country’s own financial obligations remain in place.
