The Senate Standing Committee on Privatisation was informed on Monday that four out of five companies submitting statements of qualification (SOQs) for Pakistan International Airlines (PIA) have been declared eligible for the privatisation process. The committee also learned that PIA is expected to be privatised by November 2025. Site visits and pre-bidding conferences are currently underway, with formal bidding set to follow soon, the Secretary for Privatisation stated.
During the meeting, chaired by Senator Afnan Ullah Khan, members reviewed the status of PIA, Pakistan Mineral Development Corporation (PMDC), power generation companies (GENCOs), and distribution companies (DISCOs). Some members recommended removing PMDC from the privatisation list, while NEPRA officials were summoned to discuss the privatisation of DISCOs.
Power Division officials briefed the committee that eight of nine pending issues at Nandipur and four of nine at Guddu have been resolved. Disputes over land transfer at Guddu remain, while the government is still deciding whether to provide a dedicated gas supply or continue with the current arrangement based on availability. The committee underscored the importance of resolving energy supply issues for successful privatisation.
On PIA, the Privatisation Commission secretary clarified that participating companies would need to form consortiums with established airlines to operate the national carrier. Two applicants were disqualified for not meeting standards. Committee members raised concerns over PIA’s Rs650 billion debt, with Chairman Senator Khan suggesting that the airline’s two hotels could be sold to help reduce liabilities.
Officials explained that although state enterprises are profitable now, their future profitability is uncertain. “The government’s role is not to run power plants or transport companies. After privatisation, the government will earn revenue, while the private sector will improve performance and recovery,” the secretary noted.
The PMDC’s chief financial officer reported that the corporation generates Rs5.4 billion annually and produces 1.5 million tonnes of salt. The committee emphasised that clarity on energy agreements, debt restructuring, and the protection of profitable assets is necessary before proceeding with privatisation.
