Pakistan’s economy should grow by more than four per cent this financial year. Finance Minister Muhammad Aurangzeb gave the forecast in an interview with Reuters on the sidelines of IMF and World Bank meetings in Bangkok. He said growth would stay strong despite high oil prices in world markets. The minister added that the government was watching inflation closely, since rising fuel costs can push up the price of everyday goods.
The forecast is a hopeful sign after years of economic trouble. Pakistan’s economy was badly shaken by the pandemic and a balance-of-payments crisis. Growth has slowly recovered as inflation cooled and the currency steadied. The minister said farm output remained strong, which supports the outlook for the year ahead.
Privatisation Push
The government plans to sell five or six state-owned firms this financial year. Officials expect the sales to raise more than $1 billion for the national treasury. Around a dozen firms are in line for sale in total, and the government hopes to complete most of the deals within the year.
The firms on the list include power distribution companies that lose money year after year. The government also plans to hand over airport operations to private operators to improve services. Pakistan privatised its national airline last year after a long and difficult process. Officials said private owners would run these businesses more efficiently than the state.
A Fragile Recovery
The minister said Pakistan had secured enough fuel and avoided shortages this year. He added that critical sectors such as agriculture were holding up well despite global pressures. These are positive signs, but the recovery remains fragile.
Risks remain on the horizon. Pakistan has a population of 255 million people and depends on Gulf energy imports, remittances from overseas workers and regional loans. This makes the economy sensitive to tensions in the Middle East, officials said. Any long disruption in the region could push up oil prices and hurt the growth forecast.
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