The federal government is working to complete the sale of Pakistan International Airlines (PIA) and the outsourcing of Islamabad International Airport by November 2024, Finance Minister Muhammad Aurangzeb revealed to AFP. Speaking at the World Bank headquarters in Washington, Aurangzeb explained that the five-month delay in privatizing these enterprises was largely due to the need for macroeconomic stabilization and comprehensive due diligence on potential investors.

Aurangzeb noted that both foreign and local investors are seeking strong economic foundations before committing substantial financial resources. To accommodate this, the government extended the timelines, allowing potential bidders additional time to complete their assessments.

The Finance Minister also highlighted positive developments in Pakistan’s economic landscape, including improvements in the current account deficit and the stabilization of the rupee. He emphasized the importance of reforming state-owned enterprises (SOEs), expanding the tax base, and addressing inefficiencies in the power sector.

Aurangzeb stated that expanding the tax base is a crucial component of the recently approved IMF program. Despite Pakistan’s population exceeding 240 million, only 5.2 million income tax returns were filed in 2022. He stressed the need to tax sectors such as real estate, retail, and agriculture, as traditional taxpayers have reached a “saturation point.”