ISLAMABAD: Prime Minister Shehbaz Sharif on Wednesday announced that the bidding process for Pakistan International Airlines (PIA), the first state-owned entity under the divestment policy, will take place on December 23.
Speaking at a meeting with business leaders and representatives participating in the privatisation, the prime minister stressed that transparency and merit are the government’s top priorities. The entire bidding process will be broadcast live across the country, he added.
This renewed push comes after a previous attempt to privatise PIA failed, when a $36 million bid fell far short of the $305 million floor price. This time, the government is offering full divestment, scrapping the sales tax on leased aircraft, and providing limited protection against legal and tax claims.
About 80% of the airline’s debt has been shifted to the state.
PM Shehbaz said that modernising PIA is crucial for restoring its reputation and aligning it with contemporary demands. “God willing, PIA will soon once again live up to its tradition of being ‘Great People to Fly With,’” he remarked.
He also noted that a revived PIA would benefit overseas Pakistanis and strengthen the country’s tourism sector.
Local business groups, including Airblue, Lucky Cement, Arif Habib Group, and Fauji Fertiliser, have expressed interest in participating, with final bids expected later this month.
Four pre-qualified consortia are currently negotiating commercial terms and shareholder agreements.
Privatisation Minister Muhammad Ali told Reuters last month that the government is targeting Rs86 billion in privatisation proceeds this year, with PIA expected to contribute significantly.
The move comes as PIA resumes international flights, including to the United Kingdom, more than five years after a ban related to a fake pilot licence scandal.
