Finance Minister Aurangzeb reaffirms govt's support for privatization, public-private partnership 

Islamabad (Web Desk): Finance Minister Muhammad Aurangzeb has reiterated that the government is committed to encouraging privatization and expanding public-private partnerships as part of its efforts to attract greater private investment into the economy.

Speaking at an event hosted by the Asian Development Bank in Islamabad, the finance minister said the government’s economic strategy is centered on giving the private sector a stronger role in driving growth, continuing structural reforms and ensuring that Pakistan does not slip back into repeated cycles of rapid expansion followed by economic instability.

He pointed to improvements in the country’s fiscal position, saying government revenues have increased by 40 percent over the past two years. At the same time, he said authorities are continuing to work on controlling and rationalizing public spending.

Aurangzeb said Pakistan’s current tax-to-GDP ratio is 10.3 percent, with the immediate objective of raising it to between 11 and 12 percent.

He also highlighted the growing contribution of the technology industry, noting that IT exports amounted to $4.6 billion in the previous fiscal year. Freelancers alone generated $1.6 billion during the period, he added.

The finance minister said the government is aiming to achieve economic growth of more than four percent during the ongoing fiscal year.

He further said the country’s foreign exchange reserves had reached $18.5 billion by June 30, while the government has set its sights on increasing the reserves to $21 billion by the close of the current fiscal year.

Privatization Adviser Muhammad Ali, speaking at the same event, said Pakistan’s future economic expansion would increasingly depend on private businesses rather than the public sector taking the lead in commercial activity.

He said the Federal Public Private Partnership Authority, commonly known as P3A, is being brought under the Privatization Division as part of an effort to streamline the system.

The minister said that the move is intended to simplify processes, strengthen coordination between relevant institutions and improve overall efficiency.

The adviser said 38 projects, with a combined estimated value of $6.5 billion, are currently being pursued under the PPP framework.

These initiatives cover a range of areas, including roads, railways, hospitals, hospitality, aviation and industrial estates.

Turning to the privatization programme, Muhammad Ali said work was underway on 27 transactions involving a range of public-sector assets and entities. These include power distribution companies, airports, insurance firms and banks.

He said the successful sale of PIA had demonstrated that Pakistan possesses both the ability and the determination to move ahead with the privatization of state-owned assets.