WASHINGTON: Pakistan’s Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, declared on Wednesday that Pakistan International Airlines (PIA) will be privatized before the conclusion of this year, representing a major milestone in the government’s broader economic reform and privatization efforts.
In an interview with CGTN America, Aurangzeb highlighted that Pakistan has made notable progress in achieving macroeconomic stability, citing enhancements in foreign reserves, a decline in inflation, and increased investor confidence.“Our foreign exchange reserves now cover approximately two and a half months of imports. Inflation has dropped into single digits, and the policy rate has been reduced by half,” the finance minister stated.
He further mentioned that Pakistan has received a series of upgrades to its credit ratings from leading global agencies. “This year, Fitch, S&P, and Moody’s have all improved Pakistan’s outlook, which reflects a rising level of trust in our economy,” he explained.Regarding the recent engagement with the International Monetary Fund (IMF), Aurangzeb confirmed that the review mission was successfully completed. “The staff-level agreement was announced earlier this week, demonstrating the IMF’s confidence in Pakistan’s structural reform agenda,” he added.
While significant strides have been taken in sectors such as taxation, energy, public finance, and privatization, Aurangzeb acknowledged that privatization has posed some challenges. Nevertheless, he pointed to a recent achievement: the International Holding Company (IHC), nominated by the United Arab Emirates, acquired a controlling stake in the state-run First Women Bank Limited (FWBL).
Addressing the future of Pakistan’s national airline, the minister expressed optimism, stating, “We are confident that PIA will be privatized before the end of this year.”The positive economic indicators have also allowed Pakistan to re-enter international financial markets. “We have resumed borrowing from Middle Eastern banks after an interval of roughly two and a half years,” Aurangzeb noted. Additionally, Pakistan is preparing to issue its first Panda bond denominated in renminbi for the Chinese market.
Highlighting Pakistan’s growing economic partnership with China, Aurangzeb emphasized that the relationship is evolving beyond infrastructure projects to include a focus on private-sector investments.
