Pakistan to Seek Bids for PIA Sale Following Profit Turnaround

The Ministry of Privatisation announced on Thursday that the government of Pakistan will solicit expressions of interest (EOI) next week for the divestment of Pakistan International Airlines (PIA). This development occurs shortly after PIA announced its first annual profit in more than two decades.

The government aims to offload a stake ranging from 51% to 100% in the financially troubled airline. This measure is intended to generate revenue and implement reforms within struggling state-owned enterprises (SOEs), aligning with the conditions of a $7 billion program supported by the International Monetary Fund (IMF).

An earlier endeavor to privatize PIA faltered last year due to the receipt of only one offer, which fell considerably short of the anticipated price of over $300 million.

Privatisation Commission Approves New Bidding Process

According to a statement from the ministry, the privatisation commission board has sanctioned the pursuit of fresh bids.

“The board has given the go-ahead to the pre-qualification standards for choosing potential bidders,” the statement noted. It further mentioned that new EOIs for acquiring between 51% and 100% of the airline’s ownership will be requested in the coming week.

Pakistan has transferred a significant portion of the national carrier’s historical debt to governmental accounts. This action was taken after concerns voiced by bidders contributed to the failure of the previous privatization attempt.

Muhammad Ali, the government’s advisor on privatisation, stated the previous week that all concerns raised during last year’s unsuccessful attempt have been addressed.

The national carrier has achieved profitability after a period of 21 years, reporting a net profit of Rs26.2 billion for the fiscal year 2024.

According to a PIA press statement, the airline registered an operational profit of Rs9.3 billion in 2024.

The airline’s last profitable year was in 2003, after which it sustained losses for the subsequent two decades.