PM Directs Transparency in PIA Privatization

Prime Minister Shehbaz Sharif has instructed relevant departments to maintain openness throughout the Pakistan International Airlines (PIA) privatization process and to adhere to the established timeline.

This announcement follows the federal government’s formal invitation for expressions of interest (EOIs) from prospective investors for PIA’s privatization, representing a significant step toward transferring a controlling stake in the national airline.

The Privatisation Commission stated that the plan involves selling between 51% and 100% of PIA’s shares, along with transferring management control to the buyer. Interested parties have until June 3, 2025, to submit their EOIs.

Transparency Imperative

During a meeting convened to assess the ongoing privatization of PIA, PM Shehbaz emphasized that transparency is crucial to the airline’s privatization process.

He also instructed the involved authorities to ensure the privatization occurs within the specified timeframe. Highlighting the significance of roadshows and active investor engagement, the Prime Minister mandated that the privatization process, along with all future state-owned enterprise transactions, be broadcast live on television and digital platforms to guarantee transparency.

The meeting participants were briefed on the development of a comprehensive investor outreach strategy, created in partnership with a consultant and currently being implemented.

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

Employee Security Assured

Following the meeting, Muhammad Ali, the Prime Minister’s Advisor on Privatization, told the media that the jobs of approximately 6,900 PIA employees would be protected.

“We have taken lessons from previous errors,” he noted, adding that bidders will have 60 days to examine the accounts.

He said that the bidding company for the national airline must have a revenue of Rs200bn in 2 years and the companies participating in the bid must have Rs30bn in cash or shares.

He further mentioned that the 18% GST on aircraft leases or purchases had been eliminated.

The advisor clarified that provincial governments are not permitted to participate in PIA’s privatization.