WASHINGTON: Finance Minister Muhammad Aurangzeb has said that the government would privatise PIA and the Islamabad airport in the first phase and will then consider privatising the Karachi and Lahore airports.

In talks and interviews with various media outlets and think tanks, the minister also emphasised the need to give the private sector a freer hand by removing the government from sectors where its involvement is not needed.

Mr Aurangzeb, attending the IMF and World Bank meetings in Washington, hoped to finalise the delayed privatisation of the national airline and the outsourcing of Islamabad’s international airport by November.

Initially targeted for completion by June this year, the privatisation was delayed due to two factors: the need to ensure macroeconomic stability and the importance of thorough due diligence on prospective buyers.

Aurangzeb says $1bn has been sought from IMF climate fund

The minister said that the delay was also due to the need for careful scrutiny of potential bidders as this additional evaluation was crucial to ensure that only suitable candidates were considered.

Mr Aurangzeb outlined the severe impact of climate change on Pakistan’s economy, revealing that the country has requested $1 billion from the IMF’s climate fund to address these challenges.

“We have formally requested to be considered for this facility” from IMF’s Resilience and Sustainability Trust, he said.

The minister also participated in investor forums hosted by Citibank, Standard Chartered, and JP Morgan. He provided an overview of Pakistan’s economic performance over the last fiscal year, expressing the confidence that key economic indicators are moving in the right direction. He outlined several reforms, including changes in taxation, the energy sector, state-owned enterprises, privatisation, and the restructuring of government operations.

He also stressed the role of provincial governments in increasing the tax-to-GDP ratio, citing the recent National Fiscal Pact signed by the federal government.

Mr Aurangzeb highlighted the reforms being implemented within the Federal Board of Revenue. He answered the investors’ questions on topics like the Sovereign Wealth Fund, Special Economic Zones, and Power Purchase Agreements with Chinese Independent Power Producers.

Mr Aurangzeb also had a luncheon meeting with the leadership and members of the US-Pakistan Business Council (USPBC). He acknowledged the Council’s efforts in fostering trade and investment ties between Pakistan and the US, noting the presence of over 80 American enterprises as a testament to Pakistan’s market potential.

Published in Dawn, October 25th, 2024