The Cabinet Committee on Privatisation on Tuesday approved the Rs135 billion bid submitted by an Arif Habib Group-led consortium for the purchase of a 75 percent stake in Pakistan International Airlines and forwarded the transaction to the federal cabinet for final approval.
The committee, chaired by Deputy Prime Minister and Foreign Minister Senator Mohammad Ishaq Dar, reviewed the outcome of the bidding process and endorsed the proposed divestment of the government’s majority shareholding in the national flag carrier, an official statement said.
The Arif Habib Group-led consortium had emerged as the highest bidder last week, offering Rs135 billion for the stake, a price 35 percent higher than the government’s reference valuation. The consortium also committed to invest an additional Rs80 billion in PIA over the next five years.
The bidding for 75 percent shares of Pakistan International Airlines Corporation Limited was conducted by the Privatisation Commission at a local hotel in Islamabad. Adviser to the Prime Minister on Privatisation Muhammad Ali chaired the bidding session.
During the meeting, the secretary of the Ministry of Privatisation briefed the committee on the proposed timeline and future course of action for the privatisation of Pakistan International Airline Holding Company Limited.
Senator Ishaq Dar directed relevant ministries and departments to complete all formalities promptly to facilitate early completion of the transaction, expressing hope that the process would help revive PIA’s operational performance.
The meeting was attended by the minister for power, advisers to the prime minister on privatisation and industries and production, special assistants to the prime minister Tariq Bajwa and Bilal Kiyani, federal secretaries from the cabinet, privatisation, defence, law, power and industries divisions, and senior officials of the Privatisation Commission.
Separately, the Pakistan International Airlines Retired Employees Association welcomed the government’s assurances regarding the continuation of pensions, medical facilities, concessional travel and other benefits following PIA’s privatisation.
The assurances were conveyed during the association’s 16th annual meeting, chaired by Syed Tahir Hassan and attended by a large number of retired PIA employees.
According to a press release quoted by APP, the association thanked the prime minister, Privatisation Commission Chairman Muhammad Ali, PIAHCL Chairman Tariq Bajwa and other officials for ensuring the protection of retired employees’ benefits.
Participants termed the assurances a positive step towards safeguarding the welfare of former PIA staff.
