Pakistan targets over 4% growth, $1bn+ from privatization: Muhammad Aurangzeb

October 12, 2026 (MLN): Pakistan expects its economy to expand by more than 4% in the current fiscal year despite elevated oil prices, while the government aims to privatize five to six state-owned entities that could generate over $1bn, Finance Minister Muhammad Aurangzeb told Reuters in an interview on Monday.

Speaking on the sidelines of the International Monetary Fund (IMF) and World Bank annual meetings in Bangkok, Aurangzeb said Pakistan had secured sufficient fuel supplies to avoid shortages, while key sectors, including agriculture, continued to demonstrate resilience.

The minister said the government was closely monitoring inflationary pressures arising from higher commodity prices, amid concerns over the economic consequences of a prolonged conflict in the Middle East.

Pakistan remains exposed to regional instability due to its dependence on energy imports from Gulf countries, remittances and financial support from the region. The country also continues to rely on external financing to strengthen its foreign exchange reserves and meet debt obligations.

Aurangzeb's growth outlook comes as Pakistan continues economic reforms under a $7bn, 37-month IMF Extended Fund Facility agreed in 2024. The programme includes measures to increase tax revenues, including taxation of agricultural income.

On external financing, the finance minister said Pakistan was continuing discussions with the United States over a proposed $10 billion exchange stabilization facility, although he did not provide a timeline for concluding the negotiations.

He said securing the facility would provide additional support to Pakistan, while its absence would not create difficulties for the country's access to international markets.

Discussions are also continuing with the Export-Import Bank of the United States (EXIM) and the US International Development Finance Corporation (DFC), Aurangzeb told Reuters.

The financing discussions come after Pakistan reached a staff-level agreement with the IMF last week, potentially paving the way for around $1.21 billion in disbursements under its existing loan programme and a climate-related financing arrangement.

On the privatization front, Aurangzeb said the government had approximately a dozen entities in the pipeline following the sale of Pakistan International Airlines last year.

The planned transactions include state-owned power distribution companies and the outsourcing of airport operations. The government expects five or six of these initiatives to materialize during the current fiscal year, potentially generating more than $1bn.

Aurangzeb said the government intended to expand the private sector's role in the economy, with the state focusing on providing the necessary support and facilitating an environment for private investment.

Privatization remains an important component of Pakistan's economic reform agenda, particularly as the government seeks to reduce the financial burden associated with loss-making state-owned enterprises.

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