PM Sharif Orders Transparency in PIA Privatisation

Prime Minister Shehbaz Sharif has instructed relevant departments to ensure a transparent process in the privatisation of Pakistan International Airlines (PIA) within the set timeframe.

This directive follows the government’s formal invitation for expressions of interest (EOIs) from potential investors for PIA’s privatisation, representing significant progress in the plan to divest a controlling interest in the national carrier.

The Privatisation Commission has stated that it intends to sell between 51% and 100% of PIA’s shares, along with transferring management control to the new owner. Interested parties have until June 3, 2025, to submit their EOIs.

During a meeting held to assess the ongoing privatisation of PIA, PM Shehbaz emphasised that the entire procedure must prioritize transparency.

He also urged the involved authorities to complete the privatisation within the allocated timeframe. He highlighted the significance of investor roadshows and complete engagement to ensure transparency. The Prime Minister suggested broadcasting the privatisation process, as well as future state-owned enterprise sales, live on television and digital platforms.

Officials informed the meeting that a thorough investor outreach strategy had been created with the help of consultants and is currently being executed.

The prime minister received details regarding the bidding criteria, the required timeline, and the conditions for participating in the bidding process.

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

“We have learned from our previous errors,” he stated, adding that bidders would be granted 60 days to examine the accounts.

He specified that the bidding company must demonstrate revenues of Rs200 billion over two years and possess Rs30 billion in cash or shares to qualify.

Furthermore, he mentioned that the 18% GST on aircraft leases or purchases has been eliminated.

The advisor clarified that no provincial government is allowed to participate in the PIA privatisation process.