Pakistan sees growth above 4%, looks to raise more than $1 billion from privatisation

Pakistan's economy is projected to expand beyond 4% this fiscal year, despite surging oil prices, according to Finance Minister Muhammad Aurangzeb. The government aims to raise over $1 billion through the privatization of five to six entities, including state-owned utilities and airport operations, which could bolster the country's financial stability.

The South Asian nation, home to 255 million people, has maintained sufficient fuel supplies and stable critical sectors like agriculture. Aurangzeb emphasized that Pakistan should surpass 4% growth, as the nation has been grappling with external financing needs to stabilize foreign exchange reserves and meet debt obligations. The government is also negotiating with the United States for a $10 billion exchange stabilization facility, a potential $1.21 billion IMF loan program, and other financial support mechanisms.

Privatization efforts, such as the recent sale of flag carrier Pakistan International Airlines, are seen as crucial for demonstrating Pakistan's commitment to reform and regaining the faith of international financial institutions like the IMF and World Bank.