The Government of Pakistan is set to invite fresh expressions of interest (EOIs) for the privatization of Pakistan International Airlines (PIA) by the end of April 2025. This initiative follows the airline’s first annual profit in over two decades and significant financial restructuring aimed at attracting potential investors.​

Background and Previous Challenges

In 2024, the government’s attempt to privatize PIA fell short, receiving only a single bid of Rs10 billion against an expected minimum of Rs85 billion. Issues such as substantial legacy debt and tax concerns were cited as deterrents for investors. ​

Financial Turnaround and Reforms

PIA reported an operating profit of PKR 9.3 billion and a net profit of PKR 26.2 billion for the fiscal year 2024. This turnaround is attributed to measures including debt restructuring, staff reductions, and the discontinuation of unprofitable routes. ​

Upcoming Bidding Process

Muhammad Ali, the government’s adviser on privatization, announced plans to publish the new EOI by late April 2025. The government aims to complete the privatization process by the end of the year, with revised pre-qualification criteria and a potential adjustment of the reference price based on the latest financial statements. ​

Roosevelt Hotel and Broader Privatization Efforts

The government has appointed Jones Lang LaSalle to explore options for the PIA-owned Roosevelt Hotel in New York, considering either a direct sale or a joint venture with a top-tier developer. This move is part of a broader strategy to privatize state-owned enterprises, aligning with the conditions of a $7 billion IMF program.

Investor Considerations

Potential investors have expressed interest in full ownership of PIA to ensure control over management and financial decisions. Concerns remain regarding the airline’s liabilities and operational challenges, but the government’s recent reforms aim to address these issues and make the investment more attractive.