BusinessPolicy change Affects Pakistan

Pakistan Targets One Billion Dollars Through State Asset Privatisation

Published 1d ago · Latest report 2h ago

Covered in 2 countries

AI summary52s readNeutral

Pakistan aims to raise over $1 billion from state privatisations while targeting economic growth above 4 per cent.

Pakistan expects economic growth to exceed 4 per cent this fiscal year and plans to raise over $1 billion by privatising five to six state-owned enterprises. Finance Minister Muhammad Aurangzeb announced the targets during the International Monetary Fund and World Bank annual meetings in Bangkok. The cash-strapped nation is also continuing talks with the United States for a separate $10 billion exchange stabilisation facility.

Targeted assetsThe privatisation pipeline includes state power distribution companies and airport operations.
Economic growthThe finance minister anticipates growth above 4 per cent despite high global oil prices.
IMF supportPakistan recently reached a staff-level agreement for about $1.21 billion in financing.
US discussionsOfficials are negotiating a proposed $10 billion exchange stabilisation facility with the United States.

By the numbers

$1funds targeted from privatisation

4%expected economic growth rate

$7IMF loan program value

$10proposed exchange stabilisation facility

Timeline

Oct 10Finance Minister Muhammad Aurangzeb departed for Bangkok for the annual IMF and World Bank meetings.
Oct 12Aurangzeb announced plans to privatise five to six state entities to raise over $1 billion.

Why it matters

Pakistan relies heavily on external financing, remittances, and international loan programs to stabilize its foreign exchange reserves and meet heavy debt repayments following a severe economic downturn. Privatising loss-making state enterprises serves as a crucial benchmark for the country's reform credibility under its ongoing International Monetary Fund bailout framework.

What outlets agree on

Pakistan's finance minister confirmed during the annual meetings in Bangkok that the government aims to privatise several state entities to raise upward of $1 billion while maintaining a growth forecast above 4 per cent.

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