PM Directs Transparency in PIA Privatization

Prime Minister Shehbaz Sharif instructed relevant departments on Friday to guarantee openness throughout the privatization of Pakistan International Airlines (PIA) within the established timeline.

This announcement follows the government’s formal invitation for expressions of interest (EOIs) from prospective investors for PIA’s privatization, a key step in transferring a controlling interest in the national carrier.

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

PM Shehbaz, while presiding over a review meeting on the national airline’s privatization, emphasized that transparency is essential to the airline’s privatization process.

He also instructed the involved authorities to ensure the privatization proceeds as scheduled. The premier stressed the significance of investor roadshows and engagement, directing that the privatization and all future state-owned enterprise activities be broadcast live on television and digital platforms to ensure transparency.

Officials informed the meeting attendees that a thorough investor outreach strategy was created with the consultant’s help and is currently being executed.

The prime minister received details regarding the bidding criteria, timeframe, and participation requirements.

Following the meeting, Muhammad Ali, the Prime Minister’s Advisor on Privatization, told the media that the jobs of approximately 6,900 national airline employees are secure.

“We have taken lessons from errors in the past,” he stated, noting that bidders would have 60 days to examine accounts.

He added, “The bidding company for the national airline must demonstrate a revenue of Rs200 billion over two years,” and that participating companies must possess Rs30 billion in cash or shares.

He further mentioned the elimination of the 18% GST on aircraft leases or purchases.

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