Government to proceed with PIA asset disposal in Q4 after due diligence

The federal government plans to dispose of Pakistan International Airlines Corporation Limited (PIACL) operational assets in the final quarter of the year, following a 60 to 90-day due diligence process, the National Assembly’s Standing Committee on Privatisation on Monday.

According to news reports, the committee, chaired by Farooq Sattar, was briefed on the ongoing privatisation of PIA and First Women Bank Limited (FWBL). 

Privatisation Commission Secretary Usman Akhtar Bajwa updated the committee that the four pre-qualified parties for PIA’s privatisation would begin the buy-side due diligence phase on Tuesday, with the process expected to conclude within 60 to 90 days, depending on the potential buyers.

The pre-qualified parties include consortiums comprising Lucky Cement Limited, Hub Power Holdings Limited, Kohat Cement Company Limited, Metro Ventures (Private) Limited, Arif Habib Corporation Limited, Fatima Fertilizer Company Limited, City Schools (Private) Limited, Lake City Holdings (Private) Limited, Fauji Fertilizer Company Limited, and Air Blue (Private) Limited.

As part of the discussions, the committee recommended that the government ensure a retention period for PIA’s 6,700 employees be extended from three to four years following the airline’s privatisation.

Bajwa mentioned that while PIA currently has 20 to 25 percent surplus staff, potential buyers would likely require additional employees as they expand flying operations. He also noted that negotiations with the buyers would ensure job retention, similar to the 18-month retention agreement in the previous round of PIA bidding.

In response to questions about the base price of PIA’s operational assets, Bajwa explained that it would be determined closer to the bidding date, based on buyer interest and financial advisory recommendations.

Furthermore, the committee was informed that an Expression of Interest (EOI) for the privatisation of the Roosevelt Hotel in New York City would be issued in August 2025.

Air Vice Marshal (retired) Muhammad Amir Hayat added that PIA’s financial health is expected to improve with the restoration of flights to Manchester, UK, and ongoing joint operations with Turkish Airlines and Ethiopian Airlines.