Finance Minister Muhammad Aurangzeb announced that the privatisation of Pakistan International Airlines has entered its final stage, while the government is also actively considering the outsourcing of Islamabad International Airport and the privatisation of power distribution companies.

Aurangzeb made the remarks during a meeting on Tuesday with a delegation led by founder and CEO of Acumen Jacqueline Novogratz. The meeting focused on investment opportunities, climate resilience, and ongoing economic reforms in Pakistan.

In an official statement, the Ministry of Finance said the minister briefed the delegation on the government’s reform agenda and efforts to stabilise the economy while also underlining the use of artificial intelligence (AI), data analytics, and digital integration to expand the tax base, adding that fiscal discipline and tariff reforms remain vital to sustainable growth.

Aurangzeb said Pakistan aims to raise its tax-to-GDP ratio to 11 per cent, while also pursuing export-led growth to strengthen the economy. He noted progress in Pakistan-China economic cooperation, revealing that 24 new joint projects have been finalised under the bilateral framework.

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Discussing the government’s digitalisation drive, the finance minister said all government payments will be fully digitised by the end of the next fiscal year. He also confirmed that Pakistan plans to issue its first Panda bond by year’s end, while the recent $500 million Eurobond payment was completed without issue.

The finance minister acknowledged that Pakistan continues to face two major challenges — climate change and population growth — but said the government is committed to steering reforms that promote resilience and inclusion.

Novogratz lauded Pakistan’s efforts in promoting climate-resilient agriculture and poverty alleviation, describing the country’s development experience as “truly remarkable.”

The Ministry of Finance noted that Acumen currently operates a $90 million Agriculture Resilience Fund in Pakistan to support sustainable farming and climate adaptation initiatives.

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The government’s renewed effort to privatise PIA follows a failed bid last year when only one offer — Rs10 billion ($36 million) from real estate developer Blue World City — was received for a 60 per cent stake. The offer, well below the government’s floor price of Rs85 billion ($305 million), was rejected.

The Privatisation Commission reopened the process in April 2025, inviting expressions of interest for a 51 to 100 percent stake from both domestic and international investors.

The renewed process attracted interest from eight entities, with four — including leading business groups and a private education operator — shortlisted after federal approval in July. Final bidding and negotiations are expected in the fourth quarter of 2025.

The sale of PIA is expected to mark Pakistan’s first major privatisation in nearly two decades. Reviving loss-making state-owned enterprises like PIA remains a key structural benchmark under the country’s ongoing $7 billion International Monetary Fund bailout programme.