Expression of Interest for PIA privatisation to be published by January end

The Privatisation Commission plans to issue an Expression of Interest (EOI) for the privatisation of Pakistan International Airlines Company Limited (PIACL) by the end of January. 

A committee formed by the Cabinet Committee on Privatisation (CCoP) will submit its recommendations for final approval before publishing the EOI.

The privatisation of PIACL was approved by the CCoP on November 14, 2024, and subsequently ratified by the federal cabinet on December 2, 2024. 

The International Monetary Fund (IMF) was consulted on key bidder-related questions in November and December 2024, and its consent was secured by the end of the year.

In addition to PIACL, the privatisation of the House Building Finance Corporation (HBFC) is nearing completion. The transaction, approved by the federal cabinet on July 26, 2023, involves the sale of HBFC to Pakistan Mortgage Refinance Company Limited (PMRCL) through a single-source negotiated agreement.

The HBFC, on the active privatisation list since 2018, initially attracted interest from four bidders, including two foreign entities—ICD-Islamic Development Bank and IFIC Bangladesh. However, these foreign bidders withdrew, and the State Bank of Pakistan disqualified another bidder, Pakistan Housing Finance Company, due to non-compliance.

The federal government has set a target of generating Rs30 billion through privatisation proceeds in the 2024-25 fiscal year. The plan includes the divestment of 25 state-owned entities, such as PIA, Roosevelt Hotel, First Women Bank, Utility Stores Corporation, and various power distribution companies.