PM Directs Transparency in PIA Privatisation

Prime Minister Shehbaz Sharif has instructed relevant departments to guarantee openness in the Pakistan International Airlines (PIA) privatisation process, adhering to the established schedule.

This announcement follows the government’s formal invitation for expressions of interest (EOIs) from prospective investors for PIA’s privatisation, representing a significant step towards divesting a controlling interest in the national airline.

The Privatisation Commission has determined that a stake ranging from 51% to 100% of PIA shares, along with management authority, will be offered to the eventual buyer. Interested parties must submit their EOIs by June 3, 2025.

PM Shehbaz, while presiding over a meeting today to assess the ongoing privatisation efforts, underscored that the airline’s privatisation process must be conducted with utmost transparency.

He also instructed that the privatisation be completed within the specified timeframe. He highlighted the necessity of conducting roadshows and actively involving investors, further directing that the privatisation and all future state-owned enterprise activities be broadcast live on television and digital platforms to ensure transparency.

Officials at the meeting stated that a detailed investor outreach plan had been created with the help of a consultant and is currently being executed.

The Prime Minister received briefings on the bidding criteria, timelines, and conditions for participation in the bidding process.

Following the meeting, Muhammad Ali, Advisor to the Prime Minister on Privatisation, told the media that the jobs of around 6,900 national airline employees would be protected.

“We have taken lessons from previous errors,” he stated, noting that bidders will have 60 days to examine financial records.

He added that the bidding company for the national airline must demonstrate Rs200bn in revenue over two years and possess Rs30bn in cash or shares to qualify.

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

The adviser made it clear that no provincial government is permitted to participate in PIA’s privatisation.