Pakistan’s government will invite expressions of interest next week for the sale of Pakistan International Airlines (PIA), aiming to sell a 51-100% stake in the national carrier. This announcement comes just days after PIA reported its first annual profit in over 20 years, signaling an improvement in its financial position.
The government has been seeking to privatise PIA as part of efforts to raise funds and restructure state-owned enterprises under the terms of a $7 billion agreement with the International Monetary Fund (IMF). The latest attempt to privatize the airline follows a failed bid last year, when the government received just one offer that was significantly below the $300 million asking price.
The Privatisation Commission board has approved the process of seeking new bids, with the government planning to solicit offers for a stake of 51-100%. The board has also approved pre-qualification criteria to select prospective bidders.
“The board has approved the pre-qualification criteria for the selection of prospective bidders,” the Privatisation Ministry said. “New expressions of interest in buying between 51% and 100% of the airline will be sought next week.”
To address concerns raised during last year’s failed privatization attempt, Pakistan has shifted nearly all of PIA’s legacy debt to government books. Muhammad Ali, the government’s adviser on privatisation, confirmed that the issues from the previous attempt had been resolved. “All the issues raised at the time of last year’s failed attempt have been dealt with,” Ali said.
The government plans to complete the privatization of PIA before the end of 2025. This forms part of a broader strategy outlined by Prime Minister Shehbaz Sharif, who has emphasized the need to privatize all state-owned enterprises (SOEs).
In addition to PIA, the government has initiated efforts to privatize power distribution companies, calling it a high-priority transaction. Ali mentioned that some companies initially planned for the second phase of privatization will now be included in the first phase.
Furthermore, the government has appointed Jones Lang LaSalle to explore sale options for PIA’s Roosevelt Hotel building in Manhattan, New York. These options include selling the property outright or forming a joint venture with a top-tier developer, which could potentially yield proceeds five times higher than the current value, Ali stated.
