# Aurangzeb targets $1bn-plus from 5 or 6 privatisations this year and plans to stretch out short-term external debt

Source: Searchable (https://searchable.pk/news/economy/aurangzeb-targets-dollar1bn-plus-from-5-or-6-privatisations-this-year-and-plans)
Type: News article
Author: Searchable Editorial
Published: 12 Oct 2026
Updated: 12 Oct 2026
Retrieved: 12 Oct 2026

> At the IMF and World Bank meetings in Bangkok, the finance minister said growth should top 4% and Pakistan is in no rush to sell new bonds this year.

**Pakistan expects to privatise five or six state entities this fiscal year and raise more than $1 billion**, Finance Minister Muhammad Aurangzeb told Reuters on Monday 12 October 2026, on the sidelines of the IMF and World Bank Annual Meetings in Bangkok, as reported by Dawn. In a separate interview with Bloomberg, reported by Business Recorder, he said Pakistan will move part of its short-term external debt into longer maturities over the next two to three years.

## Privatisation: what is on the list

About a dozen entities are in the pipeline, Aurangzeb said, including state-owned electricity distribution companies (DISCOs) and the outsourcing of airport operations. He expects five or six of them to be completed this fiscal year, which ends on 30 June 2027. PIA was sold last year.

One of those DISCOs is already moving: GEPCO, the Gujranwala company, has [nine prequalified bidders](/news/business/gepco-privatisation-9-bidders-prequalified-three-turkish-firms-k-electric-pulls). For a household, a change of owner does not change the tariff by itself, because NEPRA still sets it; you can check what your bill should be with our [electricity bill calculator](/tools/utilities/electricity-bill-calculator).

## Debt: longer maturities, same total

According to Business Recorder's report of the Bloomberg interview:

- Total external debt, close to **$100 billion**, is to stay roughly the same. The aim is to replace short-term borrowing with longer-dated debt to cut rollover risk.
- Pakistan is "not in a rush" to issue bonds this fiscal year and does not absolutely need to close its external financing gap this year.
- Mandates have been given for Islamic sukuk and, for the first time, dollar-settled bonds denominated in rupees. Proposals will be sought for the remaining Panda bonds, and tokenising existing Eurobonds may be explored.

## IMF money and growth

Pakistan reached a staff-level agreement with the IMF last week that could release about **$1.21 billion** under the $7 billion, 37-month Extended Fund Facility and the climate programme, Dawn reported. Aurangzeb said growth should "clock north of 4pc" this year despite high oil prices, and that the government is watching inflation closely. Talks with the US on a proposed $10 billion exchange stabilisation facility continue, with no timeframe.

## What it means for the rupee

Longer debt maturities mean fewer large repayments falling due at once, which is one of the pressures on the exchange rate. The interbank dollar was Rs 277.00 on 12 October; follow it on our [dollar rate page](/data/usd-pkr). Inflation was 10.3% in September on the [CPI page](/data/cpi-yoy).

## Frequently asked questions

**How much does Pakistan plan to raise from privatisation this year?**

More than $1 billion from five or six entities this fiscal year, Finance Minister Muhammad Aurangzeb told Reuters on 12 October 2026.

## Sources

- Pakistan looking to raise more than $1bn under govt push for privatisation, says finance minister (Dawn): https://www.dawn.com/news/2036589/pakistan-looking-to-raise-more-than-1bn-under-govt-push-for-privatisation-says-finance-minister
- Pakistan to refinance short-term external debt to reduce rollover risks: Aurangzeb (Business Recorder): https://www.brecorder.com/news/40443803/pakistan-to-refinance-short-term-external-debt-to-reduce-rollover-risks-aurangzeb

How to cite: "Aurangzeb targets $1bn-plus from 5 or 6 privatisations this year and plans to stretch out short-term external debt", Searchable, 12 Oct 2026, https://searchable.pk/news/economy/aurangzeb-targets-dollar1bn-plus-from-5-or-6-privatisations-this-year-and-plans