Govt to offer 75% stake in PIA by October

The federal government plans to offer 75% of Pakistan International Airlines Corporation Limited (PIACL) to bidders by October 2024, with the successful bidders required to invest $500 million within the first three years of the airline’s privatisation. 

According to a news report, this was disclosed during a Senate Standing Committee on Privatisation meeting chaired by Senator Muhammad Tallal Badar on Thursday.

The privatisation secretary informed the committee that six parties had been pre-qualified for the bidding process, including Fly Jinnah Limited, Air Blue Limited, Arif Habib Corporation Limited, and three consortia led by Y.B. Holdings (Private) Limited, Pak Ethanol, and Blue World City.

The committee was also briefed on the financial situation of PIACL, which has accumulated liabilities of Rs499 billion since 2015, including a Rs75 billion loss in 2023. The airline’s total liabilities have now reached Rs825 billion, against assets valued at Rs161 billion.

The privatisation secretary provided an overview of the privatisation commission’s activities over the past five years, noting that Rs4,389 million was generated through the sale of state-owned enterprises (SOEs), while Rs1,992 million was incurred in expenses. 

The secretary also discussed delays in transactions for several SOEs, including the halted privatisations of Pakistan Steel Mills and the Jinnah Convention Center.

The committee chairman emphasised the importance of the PIA transaction for the future of privatisation and the broader economy. He expressed confidence that the process would be completed successfully within the next two months, noting the potential for healthy competition in the airline industry once the privatisation is finalised.