Finance Minister Muhammad Aurangzeb says Pakistan privatisation of five or six state entities could raise more than $1 billion this fiscal year, according to an interview.
Pakistan Privatisation Pipeline
Speaking on the sidelines of the IMF and World Bank meetings in Bangkok, Aurangzeb said about a dozen entities are in the pipeline, including state-owned power distribution companies and the outsourcing of airport operations. “I expect about five or six of these to go through during this fiscal year,” he said. Pakistan International Airlines was privatised last year.
He also said growth is expected to exceed 4% this fiscal year despite high oil prices, and that inflation is being watched closely.
B+ Rating Target and US Talks
In a separate television interview, Aurangzeb said Pakistan is aiming for a B+ sovereign rating by the next fiscal year. Moody’s upgraded the country to B3 from Caa1 in August, and S&P Global Ratings raised it to B from B- in July.
Pakistan reached a staff-level agreement with the IMF last week that could unlock about $1.21 billion, and talks continue with the US on a proposed $10 billion liquidity support facility. The minister said there is no rush to issue bonds this year, though banks have been appointed for future sukuk offerings.
