Pakistan privatisation of five or six state-owned entities could bring in more than $1 billion this fiscal year, Finance Minister Muhammad Aurangzeb said on Monday, 12 October, while expecting economic growth above 4 percent despite high oil prices.
Pakistan Privatisation Plans
Speaking at the IMF and World Bank Annual Meetings in Bangkok, the finance minister said the government wants the private sector to lead the economy. After last year’s sale of the national flag carrier, about a dozen more entities are in the pipeline, including state-owned power distribution companies and the outsourcing of airport operations.
Privatisation is seen as a key test of Pakistan’s reform credibility with the International Monetary Fund.
Growth and Fuel Supply
Aurangzeb said the country has secured enough fuel to avoid shortages and that agriculture is holding up. Authorities are watching inflation closely, as rising commodity prices feed into it. Pakistan remains exposed to a prolonged Middle East conflict because of its dependence on Gulf energy imports, remittances and regional financing.
IMF Support and US Talks
Pakistan recently reached a staff-level agreement with the IMF that could unlock about $1.21 billion under the $7 billion, 37-month Extended Fund Facility signed in 2024 and a climate programme. The government is also negotiating a proposed $10 billion exchange stabilisation facility with the United States, and the finance minister gave no timeline.
He said it would be a great help if it comes through, but its failure would not hurt Pakistan’s market access. Talks with US financing institutions are also continuing.
