Pakistan targets over 4% growth, $1bn+ from privatization: Muhammad Aurangzeb

Finance Minister Muhammad Aurangzeb expects Pakistan's economy to grow by more than 4% this fiscal year despite higher oil prices, according to Mettis Global, which cited his interview with Reuters. He made the remarks on the sidelines of the IMF and World Bank annual meetings in Bangkok. Aurangzeb also said fuel supplies had been secured to avoid shortages, and that agriculture and other key sectors were holding up well.

The government is closely watching inflation linked to higher commodity prices, with concern over a prolonged conflict in the Middle East. Pakistan still relies on Gulf energy imports, remittances and regional financial support, and it needs external financing to rebuild reserves and meet debt payments. Discussions with the United States over a $10 billion facility to stabilize the exchange rate are ongoing, though no timeline has been given.

Aurangzeb said about a dozen entities are lined up for sale, including power distribution companies and airport operations outsourcing. Five or six of these deals are expected this fiscal year, potentially raising more than $1bn. Aurangzeb added that the state aims to widen private sector participation and reduce the burden of loss-making enterprises.