Pakistan expects economic growth to exceed 4% this fiscal year as the government plans to privatise five or six entities. Finance Minister Muhammad Aurangzeb shared the outlook with Reuters on Monday during the IMF and World Bank meetings in Bangkok.
Aurangzeb said the planned transactions could raise more than $1 billion. The government has around a dozen entities in its privatisation pipeline, including power distribution companies and airport operations. Pakistan has maintained adequate fuel supplies despite elevated international oil prices, Aurangzeb said.
He added that agriculture and other critical sectors continued to perform steadily despite regional economic pressures. The finance minister said authorities were closely monitoring inflation because rising commodity prices could affect the economy. Pakistan remains exposed to prolonged Middle East tensions through energy imports, remittances and financial support from Gulf countries.
The country has regained some economic stability following severe financial pressures and the Covid-19 pandemic. A $7 billion International Monetary Fund programme, signed in 2024, has supported recovery through economic reforms and measures to increase tax revenue.
After the privatisation of Pakistan International Airlines last year, the government plans to advance more transactions. Aurangzeb said officials expect five or six entities to move forward during the current fiscal year. The government views private investment as essential to economic development and reducing pressure on public finances.
Privatisation also remains an important test of Pakistan’s commitment to reforms agreed with the IMF. Aurangzeb also discussed negotiations with the United States over a proposed $10 billion exchange stabilisation facility. He said an agreement would provide additional support, but Pakistan could still access markets if the facility did not materialise.
Pakistan recently reached a staff-level agreement with the IMF that could unlock about $1.21 billion under its existing loan programme and a climate-related initiative. However, Aurangzeb did not provide a timeline for the US facility negotiations.
