Pakistan’s Finance Minister Muhammad Aurangzeb has announced plans to privatize two more major airports, Jinnah International Airport in Karachi and Allama Iqbal International Airport in Lahore, following the privatization of Islamabad International Airport. The government is reportedly in talks with Turkish and European firms for the privatization of Islamabad airport.
The privatization drive is part of the conditions imposed by the International Monetary Fund (IMF) for a bailout package. The government has been under pressure to privatize loss-making public-sector entities to reduce the budget deficit.
Aurangzeb emphasized that these economic initiatives are essential for the country’s development. He also announced that their efforts to control the current account deficit have proven effective and expressed optimism that foreign exchange reserves will rise to $9-10 billion by June.
In addition to the airport privatizations, the government is also exploring the privatization of Pakistan International Airlines (PIA) by July 2024. Furthermore, the government has stated that it will not introduce any tax amnesty schemes and that individuals and businesses will be required to pay their taxes.
Aurangzeb believes that macroeconomics are shifting in Pakistan’s favor, citing the stabilization of the rupee and the expected fall in inflation to single-digit levels by the end of next year. He also highlighted Pakistan’s recent request to the IMF for another bailout package in the range of $6 to $8 billion.
In an interview, Aurangzeb expressed that the IMF has shown a positive response to Pakistan’s request and is willing to consider a larger and longer program. Pakistan has emphasized the need for at least three years of support from the IMF to carry out comprehensive reforms in various sectors, including taxation and energy.
