Pakistan to Solicit Bids for PIA Sale Following Profit Announcement

The Privatisation Ministry declared on Thursday that the government intends to seek expressions of interest for the sale of Pakistan International Airlines (PIA) in the coming week. This announcement follows PIA’s recent report of its first annual profit in over two decades.

Pakistan is aiming to divest between 51% and 100% of the financially troubled airline. This initiative is designed to generate funds and implement reforms in state-owned enterprises that are draining resources, as part of a $7 billion program supported by the International Monetary Fund.

An earlier attempt to privatise Pakistan International Airlines last year was unsuccessful, as it only garnered a single bid, which was substantially lower than the desired price of over $300 million.

The ministry released a statement indicating that the privatisation commission board has sanctioned the pursuit of fresh bids.

“The board has given its nod to the pre-qualification criteria for the selection of potential bidders,” the statement noted. It further stated that new expressions of interest would be invited next week for the acquisition of a 51% to 100% stake in the airline.

After concerns raised by bidders resulted in the failure of the previous privatisation effort, Pakistan has transferred a significant portion of the national carrier’s legacy debt to the government’s accounts.

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