Pakistan's economy to grow over 4pc in current FY: Aurangzeb

ISLAMABAD - Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb has expressed confidence that Pakistan's economy would grow by more than 04 percent during the current fiscal year despite elevated oil prices, while the government expects to privatise five to six state-owned entities, potentially generating more than $1 billion. In an interview with a news wire on the sidelines of the World Bank Group–IMF Annual Meetings 2026 in Bangkok, the finance minister said Pakistan had successfully secured adequate fuel supplies despite challenging circumstances, avoiding shortages and ensuring that critical sectors, including agriculture, continued to function. AI deception, fake identities at heart of student death probe 'So I'm still quite clear that we should clock north of 4 percent,' Aurangzeb said, adding that the government was closely monitoring inflation because higher oil prices could have a knock-on impact on commodity prices. Aurangzeb said Pakistan, which reached a staff-level agreement with the IMF last week that could unlock about $1.21 billion in financing under the Extended Fund Facility (EFF) and a climate program, was continuing discussions with the United States on a proposed $10 billion exchange stabilization facility. 'If it comes through, this will be a great help for us,' he said, referring to the proposed facility, which is in addition to ongoing discussions with the Export-Import Bank of the United States (EXIM) and the US International Development Finance Corporation (DFC). However, the minister said Pakistan's access to international markets would not be affected if the proposed facility did not materialize. 'If it doesn't come through, this does not, you know, create any problem for us in terms of access to market,' he said. IHC reserves verdict on federal appeal over trade officers' appointments On the privatization agenda, Aurangzeb said that, following the sale of the national flag carrier Pakistan International Airlines (PIA) last year, the government had around a dozen other entities in the pipeline for privatization or private-sector participation. These include state-owned power distribution companies and plans to outsource airport operations. 'I expect about five or six of these to go through during this fiscal year,' he said, adding that the transactions could generate more than $1 billion. Meanwhile, Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb has accepted the chairmanship of the Governing Council of the Borrowers' Platform on behalf of Pakistan on the sidelines of the World Bank Group–IMF Annual Meetings 2026 in Bangkok, Thailand. He acknowledged Egypt's leadership and the contributions of member countries and the Secretariat in operationalizing the Platform. The finance minister emphasized that the Platform would promote mutual learning and technical cooperation rather than serve as a collective bargaining or crisis-management mechanism. He outlined Pakistan's priorities under the 2026–27 work plan, including strengthening debt-management practices, sharing reform experiences and exploring innovative development-financing instruments. He reaffirmed Pakistan's commitment to practical implementation and measurable results, stressing that debt should remain an instrument for development rather than a constraint on it. Aurangzeb also met with Dan Katz, First Deputy Managing Director of the IMF, and discussed Pakistan's macroeconomic stabilization, progress under the IMF-supported programme and ongoing structural reforms. The meeting held on the sidelines of the World Bank Group–IMF Annual Meetings 2026 in Bangkok, Thailand. He reaffirmed the government's commitment to fiscal discipline, tax reforms, privatization and sustainable economic growth. IHC seeks replies over planned Islamabad cricket stadium Both sides welcomed the staff-level agreement and acknowledged improvements in fiscal performance, foreign exchange reserves, inflation and external sector stability. Both sides reaffirmed their commitment to continued cooperation and safeguarding macroeconomic stability against external challenges. Meanwhile, Aurangzeb also met with Ms Armida Salsiah Alisjahbana, UN Under-Secretary-General and Executive Secretary of the United Nations Economic and Social Commission for Asia and the Pacific (ESCAP) in Bangkok. They discussed Pakistan's economic priorities and opportunities for cooperation. The finance minister outlined progress in macroeconomic stabilization and emphasized the importance of preserving these gains through structural reforms and sustainable, export-led growth. He identified climate change and rapid population growth as major challenges, seeking technical support for disaster preparedness, early-warning systems and the development of bankable climate projects. Discussions also covered digital skills and employment, sustainable finance, the energy transition and potential technical assistance for the State Bank of Pakistan. CDA extends Capital House bidding deadline by 15 days The finance minister emphasized the importance of practical cooperation that translates policy analysis into actionable measures and measurable results. Tags: pakistaneconomygrowcurrent fy