Privatisation of PIA, Discos to be completed before 2024 end: Aurangzeb

ISLAMABAD: Finance Minister Muhammad Aurangzeb announced that the government aims to complete the privatisation of Pakistan International Airlines (PIA) by the end of this year.

He said that the privatisation of PIA, along with three power distribution companies (Discos), will be finalised before the end of 2024.

Aurangzeb’s statement follows the decision to extend the PIA privatisation process until October 31, after a previous extension until October 1. The delay is attributed to factors such as low bidder interest, ongoing court cases, an ageing fleet, and civil aviation issues.

Regarding the privatisation of airports, Aurangzeb explained that the outsourcing of Islamabad and Karachi airports would occur in phases. He also stated that the rightsizing and restructuring of certain ministries and departments would be completed before the next fiscal year.

On the power sector, the minister mentioned discussions with Chinese authorities about re-profiling debt related to China-Pakistan Economic Corridor (CPEC) projects. He noted that the government is actively working on privatising struggling units and implementing power sector reforms, taking all necessary measures to meet these objectives.

“All-out efforts are being made to strengthen the economic sector,” Aurangzeb remarked.

Pakistan’s economy on path to growth, says Finance Minister

Finance Minister Muhammad Aurangzeb expressed optimism about Pakistan’s economic trajectory, asserting that it is moving towards growth through stability and improvement. He highlighted the crucial role of the private sector in driving economic progress.

Speaking at a recent press conference, Aurangzeb stressed the need for structural reforms to revitalise the economy. “We need to increase the tax-to-GDP ratio and implement reforms in the energy sector,” he said, emphasising that these reforms are vital for sustaining economic growth.

He also indicated that the current programme with the International Monetary Fund (IMF) could be Pakistan’s last, contingent on the successful implementation of structural reforms. “The Prime Minister has stated that this will be the last programme with the IMF,” Aurangzeb noted.

The finance minister elaborated on the government’s commitment to economic development, mentioning that measures are being taken to foster growth. He pointed out that inflation has declined more than expected, indicating a positive shift in the economic outlook.

“The banking sector in Pakistan is improving and will facilitate investors,” he affirmed, signalling a renewed focus on financial stability and business support. He assured that the government would provide a strong policy framework to guide these initiatives.

Aurangzeb also confirmed an increase in the number of registered taxpayers, reflecting progress in tax compliance and revenue generation. “Reforms must be implemented for economic stability,” he asserted, adding that the government is continuing its work to enhance efficiency in the energy sector.

In his concluding remarks, the finance minister called for collaboration among research organisations and think tanks, emphasising the importance of their combined efforts in formulating effective policies to guide the economy towards a prosperous future.

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