Pakistan Targets Over $1bn From New Privatisation Push

Pakistan is aiming to raise more than $1 billion through a fresh wave of privatisation as the government tries to show progress on economic reforms and reduce the financial pressure of state-owned enterprises. Finance Minister Muhammad Aurangzeb said five to six entities could be moved forward during the current fiscal year as part of a wider pipeline of public-sector assets marked for sale or outsourcing.

The comments came during the International Monetary Fund and World Bank annual meetings in Bangkok, where Pakistan’s economic programme, external financing needs and reform commitments remain under close watch. Aurangzeb said the government expects economic growth to exceed 4 per cent this fiscal year, even as higher oil prices and regional uncertainty continue to pose risks for an import-dependent economy.

Pakistan has been trying to rebuild confidence after years of economic stress, including low foreign exchange reserves, high inflation and repeated reliance on external financing. The government’s reform agenda is closely tied to a $7 billion, 37-month IMF programme approved in 2024, which requires difficult policy steps, including stronger revenue collection and action on loss-making state entities.

Privatisation has become one of the key tests of that reform plan. After the sale of the national flag carrier last year, the government is now looking at around a dozen additional entities. These include power distribution companies and airport operations, both areas where officials believe private-sector participation could improve efficiency and reduce the burden on public finances.

Aurangzeb said the government wants the private sector to take a larger role in driving the country’s economy, with the state focused on creating an enabling environment rather than running commercial businesses directly. The statement reflects Islamabad’s broader position that the public sector can no longer absorb recurring losses from inefficient enterprises without undermining fiscal stability.

The finance minister also said Pakistan has so far avoided fuel shortages despite pressure from elevated energy prices and geopolitical instability. He noted that critical sectors such as agriculture were holding up, but added that inflation remains a concern because commodity price increases can quickly affect household budgets and business costs.

Pakistan is also continuing discussions with the United States over a proposed $10 billion exchange stabilisation facility. Aurangzeb said such support would be helpful, though he did not give a timeline for any agreement. The facility would come alongside ongoing talks with other US-backed financing institutions and Pakistan’s recently reached staff-level agreement with the IMF, which could unlock about $1.21 billion in financing.

The next stage will depend on whether Islamabad can convert its reform promises into completed transactions. Investors and lenders are likely to watch the pace of privatisation closely, especially in the power and aviation sectors, where delays have historically weakened confidence in Pakistan’s economic management.