Finance czar says foreign firms showing interest in Pakistan after economic stability

• Saudi, Turkish firms showed interest in discos privatisation: FinMin.
• Comprehensive plan in works to boost investment: Aurangzeb
• FinMin hails FBR for meeting its tax collection target for September.

Finance Minister Muhammad Aurangzeb has said the country’s economy is moving in the right direction as “foreign investors are expressing interest” in investing in Pakistan.

“PIA privatisation hit a lot of boxes,” the finance czar said while addressing the media at the Overseas Chamber of Commerce and Industry in Karachi on Thursday.

He said two large conglomerates bid for the PIA privatisation and bids of $1.2 billion were received for the national flag carrier.

“Foreign investors come after local investors expressed interest. There was no foreign interest in the PIA privatisation,” the minister added.

FinMin Aurangzeb said Saudi and Turkish investors showed interest in privatising the first three discos, state-owned power distribution companies. “Now, the three Turkish firms [are expressing interest in the investment in discos] which have been added to the local investors.”

“This is a waterfall that you first bring economic stability, gain confidence of local investors and then the foreign investors come in,” he said.

Aurnagzeb said a comprehensive plan was being formulated to boost investment in the country.

He hailed the Federal Board of Revenue (FBR) for meeting its tax collection target for September.

The tax collection machinery fetched Rs3,066 billion by September 30 against the desired target of Rs3,053 billion for this period. The FBR collected Rs1,343 billion in September, helping the tax machinery surpass the desired target, according to The News.

“Economic direction is right…[we are] moving towards sustainable stability,” the federal minister said, adding that the government is seeking to achieve export-led economic growth to avoid the boom-and-bust cycle.

He admitted that the government had reduced inflation to single digits, but it rose again amid a surge in global oil rates due to the US-Iran conflict.

Referring to his earlier statement about economic losses due to protests and long marches, Aurnagzeb stressed the need for political dialogue to ensure economic stability. “We don’t have to boil the ocean. We have to agree on two to three points.”