Aurangzeb briefs Saudi counterpart on PIA, airport privatisation drive

Federal Minister of Finance and Revenue Muhammad Aurangzeb briefed his Saudi counterpart on Pakistan’s ongoing privatisation drive, including the divestment of Pakistan International Airlines (PIA) and key airports, underscoring the government’s resolve to attract strategic investments through transparency and efficiency.

The development came during Aurangzeb’s meeting with Mohammed Aljadaan, Finance Minister of the Kingdom of Saudi Arabia (KSA), on the sidelines of the IMF–World Bank Annual Meetings in Washington DC, read a statement released by the Finance Division on Thursday.

The PIA privatisation process is in its final stages, with the government aiming for a sale by the end of 2025 as part of a plan to restructure the airline.

The planned sale of PIA, part of PIA Holding Company, would mark the country’s first major privatisation in about two decades, with divestment of loss-making state firms a central plank of last year’s International Monetary Fund (IMF) bailout.

During the meeting, both sides reviewed the growing trade and investment relations between Pakistan and Saudi Arabia. Aurangzeb reaffirmed that Pakistan remains steadfast in pursuing economic reforms under the IMF programme to ensure long-term macroeconomic stability.

The IMF team reached a staff-level agreement (SLA) with the Pakistani authorities on Wednesday. The SLA is subject to approval by the IMF Executive Board, upon which Pakistan will receive disbursement of $1.2 billion.

Meanwhile, both ministers agreed that institutions such as the International Finance Corporation (IFC) and the Multilateral Investment Guarantee Agency (MIGA) could play a vital role in mobilising and de-risking private sector investments in Pakistan.

Aurangzeb also sought Saudi support for infrastructure development projects, emphasising Pakistan’s commitment to fostering a deeper economic partnership with the Kingdom.