Govt Actively Pursuing Privatization of 28 More State-Owned Firms: Finance Minister

The government has assigned 28 additional state-owned enterprises to the Privatization Commission as it accelerates its privatization drive, Finance Minister Muhammad Aurangzeb said on Tuesday.

Speaking at the Pakistan Banking Summit 2026, Aurangzeb said the government remains fully committed to privatization and economic reforms aimed at improving efficiency, attracting investment, and strengthening fiscal stability.

He said Pakistan closed the last fiscal year on a stronger economic footing, with GDP growth reaching 3.7 percent, supported by expansion in large-scale manufacturing. He added that the current account remained stable during FY26, largely due to strong remittance inflows, which he estimated at between $41 billion and $42 billion for the year.

Aurangzeb said value-added exports also played an important role in maintaining macroeconomic stability, while foreign exchange reserves rose to $18.4 billion. He said Pakistan had also regained access to international capital markets, including Eurobonds, and described Panda Bonds as particularly important for future financing diversification.

The finance minister said the Pakistan Stock Exchange recorded 11 initial public offerings during the last fiscal year, with younger investors, particularly from Gen Z, showing growing interest in the market. He also noted that Pakistan managed the impact of the 2025 floods through domestic resources, unlike the 2022 floods when international support was sought.

Highlighting budget measures, Aurangzeb said the government had abolished super tax for businesses valued below Rs. 500 million, calling the move necessary to support smaller enterprises. He said the construction sector had also been given relief, while duties on agricultural machinery had been reduced to zero.

He said the government was working to widen the tax base by bringing the retail sector into the tax net and using technology to reduce direct human interaction in tax administration. According to the minister, restoring trust in the tax system would require firm and practical steps.

Aurangzeb said the government does not see a final tax regime as viable and instead wants to simplify the overall taxation framework. He said all segments of society must contribute a reasonable level of tax in a country the size of Pakistan.

On financial inclusion and investment flows, the minister said monthly inflows under Roshan Digital Accounts had increased from $180 million to $300 million over the last three months. He added that the government wants to improve capital access for SMEs and reduce reliance on public debt through stronger fiscal discipline and a greater role for non-bank financial institutions.

He also said no-objection certificates had been issued to exchange companies in December 2025 for artificial intelligence, blockchain, and virtual assets, while urging commercial banks to strengthen cybersecurity as the economy becomes increasingly digitized.

Speaking separately to the media, Aurangzeb said trade engagement with Iran remains at an early stage following the Iran-US war, but expressed optimism about future progress. He added that strengthening economic ties with brotherly Islamic countries remains important for Pakistan.

At the same event, Pakistan Banks Association Chairman Zafar Masud said the banking sector had posted significant gains over the past year. He said banks remain active in financing SMEs, agriculture, and environmentally linked initiatives, while the industry contributes more than Rs. 1 trillion in taxes annually.

Masud said agricultural lending rose 39 percent during the year, housing finance increased 90 percent, and the number of SME borrowers jumped 111 percent. He added that the value of SME loans grew 80 percent over the same period.

He further said banks extended Rs. 2.4 trillion in financing last year to help address circular debt in the power sector and arranged Rs. 300 billion in funding for the private sector in connection with the privatization of PIA.