Pakistan looking to raise more than $1bn under govt's push for privatisation, says finance minister

Finance Minister Muhammad Aurangzeb told Reuters on Monday that the government intends to push forward the sale of five or six state entities, a move he said could bring in more than $1 billion. Dawn reported that he also projected economic growth above four per cent for the current fiscal year, even with oil prices remaining high. The comments came in an interview held on the fringe of the IMF and World Bank yearly gathering in Bangkok.

Aurangzeb said roughly a dozen state-run entities are in the pipeline, including power distribution firms and the contracting out of airport operations. He recalled that Pakistan International Airlines was privatised last year, and he anticipates that five or six of the planned transactions will be completed within the current fiscal year.

Last week a staff-level understanding was reached with the IMF, a step that could release roughly $1.21bn under the Extended Fund Facility, alongside a climate arrangement. Negotiations with the United States on a $10bn exchange stabilisation facility remain underway, though no timeline was provided. Aurangzeb added that the economy would manage access to markets even if that facility does not materialise, and that inflation is being monitored closely because of its effect on commodity prices.