Pakistan sees growth above 4%, looks to raise more than $1 billion from privatisation

Business Recorder, citing a Reuters interview with Finance Minister Muhammad Aurangzeb, reported that the economy could expand by over 4% in the current fiscal year despite costly crude. The government is also weighing the sale of five or six state entities that might bring in more than $1 billion. Aurangzeb made these remarks on the sidelines of the IMF and World Bank meetings in Bangkok.

He said the country had procured enough fuel to avoid shortages, while farming and other critical sectors were holding up. Inflation remains under close watch because of its knock-on effect on commodity prices, he added. The report also points out that the economy is highly exposed to a prolonged Middle East conflict, given its reliance on Gulf energy imports, remittances and regional financing.

Discussions with the United States over a $10 billion stabilisation facility for exchange reserves are continuing, but no timeline has been set. A staff-level IMF agreement reached last week could unlock about $1.21 billion under the Extended Fund Facility and a climate programme. Around a dozen other entities, including power distribution firms and airport operations outsourcing, are in line for sale after last year's PIA privatisation.