Islamabad, October 12,2026: Pakistan’s economy is expected to grow by more than 4% in the current fiscal year despite elevated oil prices, while the government aims to privatise five to six state-owned entities to raise more than $1 billion, Finance Minister Muhammad Aurangzeb told Reuters on Monday.
Speaking on the sidelines of the annual meetings of the International Monetary Fund (IMF) and World Bank in Bangkok, Aurangzeb said Pakistan had secured adequate fuel supplies and that key sectors, including agriculture, were holding up despite external economic pressures.
“So I’m still quite clear that we should clock north of 4%,” he said, expressing confidence in the country’s growth outlook.
He added that the government was closely monitoring inflation because rising commodity prices could have wider economic consequences.
Pakistan remains vulnerable to a prolonged conflict in the Middle East because of its dependence on energy imports from the Gulf, remittances and financial support from the region. The country also relies on external financing to strengthen its foreign exchange reserves and meet debt repayment obligations.
After a period of severe economic turmoil, exacerbated by the COVID-19 pandemic, Pakistan has regained some economic stability with support from a $7 billion, 37-month IMF programme approved in 2024. The programme includes structural reforms and measures to increase tax revenue, including from agricultural income.
Aurangzeb said Pakistan was continuing discussions with the United States on a proposed $10 billion exchange stabilisation facility, although he declined to give a timeline for concluding negotiations.
Pakistan reached a staff-level agreement with the IMF last week, potentially unlocking around $1.21 billion in financing under its Extended Fund Facility and a climate-related programme.
“If it comes through, this will be a great help for us,” Aurangzeb said, referring to the proposed US facility.
However, he stressed that failure to secure the arrangement would not create problems for Pakistan’s access to international markets.
The government is also holding discussions with the Export-Import Bank of the United States (EXIM) and the US International Development Finance Corporation (DFC).
Aurangzeb said the government had approximately a dozen state-owned entities in the privatisation pipeline, including power distribution companies and airport operations.
Following the privatisation of Pakistan International Airlines last year, the government expects five or six additional transactions to be completed during the current fiscal year, potentially generating more than $1 billion.
Privatisation remains a key component of Pakistan’s economic reform agenda and an important test of its commitment to improving the financial performance of state-owned enterprises.
Officials have previously warned that failure to divest loss-making public-sector companies could place renewed pressure on government 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 create an enabling economic environment.
