Prime Minister Shehbaz Sharif has directed that the privatisation process of Pakistan International Airlines (PIA) be carried out with full transparency, urging relevant authorities to ensure it is completed within the set timeline.
Chaired by the prime minister on Friday, the meeting focused on reviewing the progress of PIA’s privatisation. PM Shehbaz stressed that transparency must be a fundamental part of the process, underscoring the need for proper engagement with investors and stakeholders.
The government announced on Thursday that it is re-launching the privatisation process, inviting new bids with additional incentives for potential buyers. Interested investors have until June 3 to submit their expressions of interest, with the bidding phase expected to take place between October and December. The government is offering a 51% to 100% stake in PIA, along with management control of the airline.
A comprehensive investor outreach strategy has been developed in collaboration with consultants and is currently being executed to attract serious bids for the airline.
The meeting was also updated on the criteria for bidding, as well as the time frames and conditions required to participate in the process.
Earlier this year, Privatisation Minister Abdul Aleem Khan had indicated that the government planned to complete all necessary steps for privatising PIA by May. This follows previous attempts to privatise the airline, which were unsuccessful. The initial sale process was stalled after the Blue World City consortium’s bid of Rs10 billion failed to meet the government’s expectations, which were set at around Rs75 billion.
This failed attempt cost the national exchequer approximately $4.3 million, paid to Ernst & Young as the financial adviser for the deal. The privatisation commission had initially hoped to sell the airline in 2024 but now aims to conclude the process by the end of the year as part of broader economic reforms supported by the International Monetary Fund (IMF).
Ernst & Young (EY) has been appointed as the financial adviser for the transaction, and as of now, $4.3 million of the $6.8 million fee has been paid.
