The government moved closer to offloading its majority stake in Pakistan International Airlines (PIA) as four parties have qualified for the upcoming bidding round, and the transaction is targeted for completion within this year.
At a high-level review meeting on Thursday, Prime Minister Shehbaz Sharif directed officials to fast-track the restructuring and sell-off process. According to the Prime Minister’s Office, he instructed that all stages be completed with speed and full transparency.
Officials told the meeting that 75 percent of PIA’s shares are slated for privatisation and that the eventual buyer will be required to keep the airline’s name, branding and theme unchanged after the sale.
The prime minister also sought a plan to improve operations, calling for an increase in the number of airworthy aircraft and stricter adherence to scheduled departures.
A business plan presented at the meeting projected that PIA’s fleet, currently at 18 airworthy aircraft, would grow to 38 by 2029. The airline, which now serves more than 30 cities, aims to expand its network to over 40 destinations during the same period.
Privatisation Commission Chairman Muhammad Ali said this week that the IMF had approved the withdrawal of sales tax on the PIA transaction, adding that no additional guarantees would be offered to investors, noting that operating commercial businesses is not the role of provincial governments.
