Govt Wants to Complete PIA Privatization By June 2024: Finance Minister

Finance Minister Muhammad Aurangzeb said that the government wants to finalize the privatization of Pakistan International Airlines (PIA) by June 2o24. Aurangzeb was hopeful that the bidding process for PIA will soon start. Regarding operational cost reduction, he mentioned an impending decision by the federal government concerning ministries devolved to provinces. The finance minister also advocated for a public-private partnership approach in the Public Sector Development Program (PSDP). He suggested that instead of solely relying on government funding, the private sector should be incentivized to participate in PSDP projects. Aurangzeb further expressed the need to potentially revisit the formula for the National Finance Commission (NFC) Award to boost the federal government’s revenue. He underscored the government’s commitment to policy-making and economic issue resolution. The finance minister reassured that despite challenges, the government remains focused on its economic agenda. Aurangzeb’s comments comes after the International Monetary Fund (IMF) staff and the Pakistani authorities earlier this week reached a staff-level agreement on the second and final review under Pakistan’s Stand-By Arrangement, subject to the approval of the IMF’s Executive Board. Upon approval, Pakistan will have access to SDR 828 million (around US$1.1 billion). Pakistan’s economic and financial position has improved in the months since the first review, with growth and confidence continuing to recover on the back of prudent policy management and the resumption of inflows from multilateral and bilateral partners. The new government seems committed to continuing the policy efforts that started under the current SBA to entrench economic and financial stability for the remainder of this year.