The federal government has once again delayed the privatisation of Pakistan International Airlines (PIA), with the bidding now expected to take place in the last quarter of 2025, The Express Tribune reported.
The government had previously assured the International Monetary Fund (IMF) that the PIA privatisation would happen by July 2025, but the latest delay underscores the challenges faced in initiating the process. The government is also on track to miss its target of generating Rs30 billion from privatisation proceeds in the current fiscal year, with no entity expected to be privatised until at least June 2025.
According to the Tribune’s report, Adviser to the Prime Minister on Privatisation Muhammad Ali confirmed the delay during the Business Summit organised by Nutshell Group, where he discussed the hurdles to the privatisation agenda.
The PIA bidding process, which was initially scheduled for July 2025, will now see an expression of interest issued before the end of this month. However, investors may require three to five months to complete the due diligence process before the bidding stage.
The government has reiterated its plan to sell at least 51% of PIA’s shares to a private party, although it remains unclear if an affiliate of a government ministry would be considered a private party.
The government has also missed the deadline to privatise the House Building Finance Company, which was supposed to be completed by the end of April. Similarly, the privatisation of the First Women Bank Limited, previously set for May 2025, is now expected to be completed by July 2025.
Last year, the government had set a modest goal of privatising 24 state-owned enterprises (SOEs) in three phases, with ten transactions planned for the first year. However, this phase has already fallen significantly behind schedule. A lack of bidders and disagreements over terms have contributed to the delays.
Despite these setbacks, Muhammad Ali expressed confidence that with a clearer understanding of the need to end the government’s role in business, the privatisation process will accelerate.
He acknowledged that policy inconsistencies, judicial delays, and bureaucratic inefficiencies are major impediments but stressed that the government remains committed to the privatisation agenda.
Ali also noted that the goal is to foster greater competition, improve productivity, reduce inflation, and stimulate economic growth through the privatisation of state-owned enterprises.
