Bangkok: Pakistan aims to raise more than USD one billion through five or six privatisation and outsourcing transactions during the current fiscal year, Finance Minister Muhammad Aurangzeb told Reuters on Monday.
Speaking on the sidelines of the IMF and World Bank annual meetings, Aurangzeb said around a dozen entities were in the pipeline, including state owned electricity distribution companies and airport operations.
“I expect about five or six of these to go through during this fiscal year,” he said.
The programme follows last year’s privatisation of Pakistan International Airlines. Reducing the burden of loss making public enterprises remains a key part of Pakistan’s reform commitments under its IMF programme.
“We are quite clear that we want the private sector to lead the country,” Aurangzeb said, adding that the government’s role was to provide a supportive business environment.
He also forecast economic growth above four per cent this fiscal year despite elevated oil prices and the prolonged Middle East conflict.
Aurangzeb said Pakistan had secured sufficient fuel supplies to avoid shortages, while agriculture and other critical sectors were holding up. However, the government was monitoring inflation because higher energy costs could feed into commodity prices.
Pakistan remains exposed to regional disruption through its dependence on Gulf energy imports, remittances and financing.
The minister said discussions with Washington continued over a proposed USD 10 billion exchange stabilisation facility, but gave no completion date.
He described the facility as potentially helpful while saying its absence would not prevent Pakistan from accessing markets. Separate discussions were also underway with the US Export Import Bank and International Development Finance Corporation.
The interview followed last week’s IMF staff level agreement, which could unlock approximately USD 1.21 billion under Pakistan’s lending and climate programmes, subject to Executive Board approval.
