Finance czar briefs Saudi counterpart on PIA privatisation

Federal Minister for Finance and Revenue Muhammad Aurangzeb met Saudi counterpart Mohammed Al-Jadaan in Washington, DC, and briefed him on Pakistan's ongoing privatisation programme, including plans for the divestment of Pakistan International Airlines (PIA) and major airports.

According to a statement issued by the Finance Ministry on Thursday, the meeting was held on the sidelines of the IMF-World Bank annual meetings.

Pakistan is moving ahead with plans to privatise its heavily indebted national carrier in an effort to raise funds and overhaul loss-making state-owned enterprises under the terms of its $7 billion programme with the International Monetary Fund (IMF).

Officials, in a recent briefing, told the Senate Standing Committee on Privatisation that the sale of PIA is expected to be completed by November 2025.

During the meeting today, both sides reviewed the growing trade and investment relations between Pakistan and Saudi Arabia. The finance czar also underscored the government’s commitment to ensuring transparency and efficiency in the privatisation process.

"The minister highlighted Pakistan’s resolve to attract strategic foreign investment through structural reforms and improved governance in state-owned enterprises," the statement added.

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

“The two 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 private sector investments in Pakistan,” it added.

This week, Aurangzeb also met Sultan Abdulrahman Al-Marshad, CEO of the Saudi Fund for Development (SFD), and reaffirmed the strategic partnership between Pakistan and the Kingdom of Saudi Arabia.

A high-level business delegation from Saudi Arabia had visited Pakistan this month, where it signed multiple MoUs

The delegation, during its Karachi visit, signed two Memorandums of Understanding (MoUs).

The first MoU was signed for the sale and purchase of shares in KES Power Ltd. The second MoU was signed between K-Electric Limited and Trident Energy Ltd to explore strategic cooperation and investment opportunities in Pakistan’s power sector.

The visit came after Islamabad and Riyadh signed a "Strategic Mutual Defence Agreement" on September 17, pledging that any attack on either nation would be treated as an act of aggression against both.