ISLAMABAD: The Khyber Pakhtunkhwa (KP) government has formally indicated its desire to join the bidding process for the sale of Pakistan International Airlines (PIA), seeking to ensure that the airline remains part of the national framework. This announcement came shortly after the final round of bidding for PIA yielded only a single offer of Rs10 billion for a 60% share, which is significantly below the government’s set minimum price of Rs85 billion.
Originally, six groups were pre-qualified for the bidding process, but the only participant was a real estate development firm. In a communication to Privatisation Minister Abdul Aleem Khan, the KP Board of Investment and Trade (BOIT) expressed the provincial administration’s commitment to acquiring PIA.
In the letter, the BOIT articulated its intent, stating: “We wish to formally declare our interest in the PIA bidding process on behalf of the Chief Minister and the people of KPK.” The provincial body urged that their proposal be viewed as a legitimate alternative to maintain PIA’s operations under a provincial structure, emphasizing the importance of preserving the airline’s legacy as a national asset.
The BOIT underscored that PIA is not just a commercial entity, but a crucial part of the country’s identity and pride. The Chief Minister has tasked the BOIT with actively pursuing this acquisition to keep PIA under the governance of Pakistan, rather than allowing it to fall into private or foreign hands.
In line with their ambitions, the KP government is prepared to present a bid that exceeds the current highest offer, seeking to position themselves as a strong contender in the bidding process. They expressed eagerness to meet with the minister’s team to outline their proposal and vision for PIA, highlighting their capability to provide a competitive offer.
As part of a broader strategy to reduce the burden of its debt-laden state-owned enterprises, the administration of Prime Minister Shehbaz Sharif aims to divest a stake of 51-100% in PIA, aligning with the financial goals set forth in a $7 billion agreement with the International Monetary Fund (IMF).
