ISLAMABAD: The federal government will issue a fresh Expression of Interest (EoI) for the privatisation of Pakistan International Airlines (PIA) later this month, following the national carrier’s return to profitability after more than two decades, an adviser on privatisation said on Thursday.
The move comes after the airline posted its first annual profit in 21 years—an outcome officials say will improve investor appetite following last year’s failed privatisation attempt, which drew just one offer below the $300 million reference price.
“We plan to publish the new EoI by the last week of April 2025,” said Muhammad Ali, the government’s adviser on privatisation, in a statement to Reuters. “In our last attempt, bidders had concerns regarding taxation and the balance sheet. Those are now taken care of.”
Islamabad is offering a 51% to 100% stake in the loss-making carrier, which has now been stripped of most of its legacy debt, moved to the government’s balance sheet to make the asset more attractive. The pre-qualification criteria for bidders is also being revised.
The adviser confirmed that the government remains committed to completing the transaction within the year, in line with reform commitments under the ongoing $7 billion IMF programme.
Ali added that privatisation of power distribution companies has also been prioritised, with some firms initially slated for later phases now being brought forward.
The government has further appointed global real estate advisory firm Jones Lang LaSalle to explore options for the Roosevelt Hotel in Manhattan, owned by PIA. Potential sale options include a direct sale or a joint venture with a top-tier developer—a structure that, according to Ali, could generate proceeds five times higher than a simple sale.
The privatisation of PIA is part of a broader government policy to offload underperforming state-owned enterprises (SOEs), as Prime Minister Shehbaz Sharif reiterated last year.
