Key takeaways
Finance Minister Muhammad Aurangzeb told Reuters that Pakistan’s economy should grow north of 4% this fiscal year, and that five or six state entities could be privatised within the year to raise more than $1 billion.
Pakistan’s economy should grow by more than 4% this fiscal year despite elevated oil prices, Finance Minister Muhammad Aurangzeb told Reuters on Monday, as the government pursues a renewed privatisation drive expected to raise more than $1 billion.
Speaking in an interview on the sidelines of the annual meetings of the International Monetary Fund and World Bank in Bangkok, Aurangzeb said the economy was holding up even as Pakistan remains exposed to a prolonged Middle East conflict through its dependence on Gulf energy imports, remittances, and regional financing support.
“So I’m still quite clear that we should clock north of 4%,” Aurangzeb said, adding that the government was keeping a close eye on inflation because of the knock-on impact of commodity prices.
The privatisation pipeline
The minister said around a dozen entities were in the privatisation pipeline, including state-owned power distribution companies and the outsourcing of airport operations, following the sale of flag carrier Pakistan International Airlines last year.
“I expect about five or six of these to go through during this fiscal year,” he said, adding that they could raise more than $1 billion.
Privatisation has long been seen as a key test of Pakistan’s reform credibility with the IMF: failure to offload loss-making state firms risks renewed pressure on public finances. “We are quite clear that we want the private sector to lead the country,” Aurangzeb said, adding that the government’s role was to support the private sector and improve the business ecosystem.
Washington’s $10bn offer still in play
Aurangzeb also confirmed that discussions with the United States for a proposed $10 billion exchange stabilisation facility were continuing, alongside talks with the US Export-Import Bank and the US International Development Finance Corporation.
“If it comes through, this will be a great help for us,” he said of the facility, though he declined to provide a time frame. He added that Pakistan’s access to markets would not be affected if the deal did not materialise.
Pakistan, with a population of 255 million, reached a staff-level agreement with the IMF last week that could unlock about $1.21 billion in financing under the Extended Fund Facility and a climate programme. The country has been able to procure adequate quantities of fuel, avoiding any shortages, while critical sectors such as agriculture were holding up, the minister said.
Why it matters
The recovery narrative matters for Pakistan’s credibility with lenders and investors. The economy is still emerging from severe turmoil exacerbated by the COVID-19 pandemic, propped up by a $7 billion, 37-month IMF loan programme signed in 2024 with tough measures such as raising tax revenue on farm income.
The two pledges — growth north of 4% and more than $1 billion from privatisation — are commitments previous governments have struggled to deliver on. With fuel prices reviewed daily and power costs rising, the government is betting economic momentum will buy it political space.
What’s next
The next concrete milestones will be in the numbers: the IMF board’s decision on the staff-level agreement, and the first of the five or six planned privatisations this fiscal year. The fate of the US exchange stabilisation facility — a potentially large but slow-moving negotiation — will also signal how much external backing Pakistan can count on.
Sources
- Reuters — Pakistan sees growth above 4%, looks to raise more than $1 billion from privatisation (https://www.reuters.com/world/asia-pacific/pakistan-sees-growth-above-4-looks-raise-more-than-1-billion-from-privatisation-2026-10-12/) (October 12, 2026)
- Dawn — Pakistan looking to raise more than $1bn under govt push for privatisation, says finance minister (https://www.dawn.com/news/2036589) (October 12, 2026)
- Aaj English TV — Pakistan targets over 4% growth, $1bn-plus from privatisation (https://english.aaj.tv/news/330476162) (October 12, 2026)
