Govt-Owned Companies Are Dirt Cheap

Pakistan expects its economy to grow by more than 4 percent in fiscal year 2027 and intends to raise over $1 billion by privatizing five or six state-owned entities, Finance Minister Muhammad Aurangzeb informed Reuters on Monday.

Key points

• The administration is additionally pursuing a proposed $10 billion exchange stabilization facility with the United States, Aurangzeb noted.
• After the sale of Pakistan International Airlines last year, the administration has positioned privatization as part of its broader economic reform agenda.
• Pakistan reached a staff-level agreement with the IMF last week that could unlock regarding $1.21 billion in financing under its existing loan program and a climate-related facility.
• He continued that Pakistan had secured adequate fuel supplies and that key sectors, including agriculture, were holding up.
• Aurangzeb remarked the administration had around a dozen state-owned entities in its privatization pipeline, including power distribution firms and aims to outsource airport operations.

Speaking on the sidelines of the annual meetings of the International Monetary Fund and World Bank in Bangkok, Aurangzeb remarked the economy remained on track despite elevated oil costs. He continued that Pakistan had secured adequate fuel supplies and that key sectors, including agriculture, were holding up.

Meanwhile, the administration is additionally pursuing a proposed $10 billion exchange stabilization facility with the United States, Aurangzeb noted. Pakistan is continuing discussions on the proposal but has not set a timeline for concluding negotiations. He remarked the facility would provide further backing but its absence would not affect the country's access to financial markets. Chinese IPP Opposes One-Year Limit on Coal Deals.

Aurangzeb remarked the administration had around a dozen state-owned entities in its privatization pipeline, including power distribution firms and aims to outsource airport operations. It expects five or six of these transactions to be completed during the current fiscal year, potentially raising more than $1 billion.

After the sale of Pakistan International Airlines last year, the administration has positioned privatization as part of its broader economic reform agenda. Aurangzeb remarked the administration wanted the private sector to play a leading role in the economy, with the state providing backing and creating an enabling environment. Stay Connected with ProPakistani.

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Taken together, the developments around govt point to a situation that is still moving, and the coming days should bring more clarity.