Govt eyes raising $1b from privatisation

Finance Minister Muhammad Aurangzeb told Reuters on Monday that Pakistan expects economic growth above 4% this fiscal year despite high oil prices. He said the government plans to push forward the sale of five to six state entities that could together bring in more than $1 billion. The remarks came in a Bangkok interview held on the margins of the IMF and World Bank annual meetings.

According to the Express Tribune, Aurangzeb said fuel supplies had been procured in adequate quantities, avoiding any shortages, while agriculture held up. He also said the government is watching inflation closely because it feeds into commodity prices. The economy is seen as highly exposed to a drawn-out Middle East conflict since it relies on Gulf energy imports, remittances and regional financing.

Following last year's sale of Pakistan International Airlines, roughly another dozen entities remain in the pipeline, including power distribution companies and airport operations slated for outsourcing. Aurangzeb expects five or six of these deals to be completed during the current fiscal year, and he said they could be worth over $1 billion. Officials see the sales as a measure of reform credibility before the IMF and have cautioned that failing to sell off loss-making state firms could renew strain on public finances. Aurangzeb stressed that the state wants private firms to take the lead, with government acting in a supporting role.