PM Directs Transparency in PIA Privatization

Prime Minister Shehbaz Sharif has instructed relevant authorities to guarantee openness throughout the Pakistan International Airlines (PIA) privatization process, adhering to the established timeline.

This directive follows the federal government’s official call for expressions of interest (EOIs) from potential investors regarding PIA’s privatization, signifying a substantial step toward divesting a controlling interest in the national carrier.

The Privatization Commission stated that the plan involves selling between 51% and 100% of PIA’s shares, along with transferring management control to the buyer. Interested parties must submit their EOIs by June 3, 2025.

During a meeting convened to assess the ongoing privatization of PIA, PM Shehbaz underscored that the airline’s privatization procedure must prioritize transparency.

He also instructed authorities to ensure the privatization is completed within the specified timeframe. The premier emphasized the importance of roadshows and actively involving investors, directing that the privatization process, including future state-owned enterprises, be broadcast live on television and digital platforms to ensure transparency.

Officials at the meeting reported that a comprehensive investor outreach strategy has been created with the consultant’s collaboration and is being implemented.

The prime minister received details regarding bidding criteria, timelines, and participation conditions.

Following the meeting, the Prime Minister’s Adviser on Privatisation, Muhammad Ali, spoke to the media, assuring that the future of approximately 6,900 PIA employees is secure.

“We have learned from past errors,” he stated, noting that bidders will have 60 days to review the accounts.

He added that the bidding company for the national airline is required to have a revenue of Rs200 billion within 2 years and must possess Rs30 billion in cash or shares.

Furthermore, he announced the elimination of the 18% GST on aircraft leases or purchases.

The adviser also clarified that provincial governments are barred from participating in PIA’s privatization process.