Pakistan's economy should grow more than 4% this fiscal year. Finance Minister Muhammad Aurangzeb said this despite high oil prices.
He spoke to Reuters on Monday in Bangkok.
"So I'm still quite clear that we should clock north of 4%," Aurangzeb said.
Inflation And Fuel Supply
Aurangzeb said the government is watching inflation closely. Rising oil prices can push up the cost of goods.
"We are keeping a very close eye because it does have a knock-on impact in terms of the commodity prices," he said.
Pakistan has secured enough fuel, he added. This has helped avoid shortages. Aurangzeb also said farm output remains strong.
Pakistan has a population of 255 million people. The country depends on Gulf energy imports, remittances, and regional loans. This makes its economy sensitive to conflicts in the Middle East.
Plan To Raise $1 Billion From Privatisation
The government wants to sell five or six state-owned firms this year. This could raise more than $1 billion.
"I expect about five or six of these to go through during this fiscal year," Aurangzeb said.
About a dozen firms are in line for sale. These include power distribution companies. The government also plans to outsource airport operations.
Pakistan privatised its national airline, Pakistan International Airlines, last year.
"We are quite clear that we want the private sector to lead the country," Aurangzeb said.
Privatisation is a key part of Pakistan's deal with the International Monetary Fund. Officials have warned that unsold, loss-making state firms could strain public finances again.
IMF Deal And Fresh Funding
Pakistan reached a staff-level agreement with the IMF last week. This could release about $1.21 billion. The funds come from the Extended Fund Facility and a climate program.
Pakistan signed the $7 billion Extended Fund Facility in 2024. The 37-month deal includes higher taxes on farm income.
Talks With The US
Pakistan is also in talks with the United States. It wants a $10 billion exchange stabilisation facility.
Aurangzeb gave no timeline for these talks. Discussions are ongoing with the US Export-Import Bank and the US International Development Finance Corporation.
Aurangzeb said market access would not suffer if this deal falls through.
