Khyber Pakhtunkhwa government expresses intention to acquire PIA
Khyber Pakhtunkhwa (KP) has formally
expressed its intention to acquire Pakistan International Airlines (PIA),
offering to outbid competitors while advocating for the airline to remain under
government control to preserve its symbolic value. This proposal, communicated
in a letter from KP authorities to federal officials on Friday, became public
on Saturday.
This interest follows the federal
government's initiation of PIA's privatization process, during which only a
single bid of Rs10 billion (approximately $36 million) was received from Blue
World City, a real estate developer. This bid fell significantly short of the
government’s minimum target of Rs85 billion ($305 million), drawing criticism
from PIA unions and analysts who labeled it an “embarrassment.”
Critics suggest that rather than
selling the airline, the government should invest in expanding PIA’s fleet to
improve its operational capabilities.
Read
More PIA’s
privatization: Single bid of Rs. 10b ($36 million) received from a real estate
firm
The letter from KP's Board of
Investment and Trade conveyed the provincial government’s position: “On behalf
of the Chief Minister and the people of KP, we wish to express our earnest
interest in participating in the bidding process for the sale of Pakistan
International Airlines (PIA),” it stated, indicating that KP is ready to submit
a bid exceeding that of Blue World City.
Addressed to Pakistan’s Privatization
Minister Abdul Aleem Khan, the letter highlighted PIA’s significance as “a
critical asset that symbolizes our national identity and pride.” Chief Minister
Ali Amin Gandapur has directed provincial authorities to actively pursue this
acquisition, emphasizing that the airline should remain in public hands rather
than be transferred to private or foreign-backed entities.
KP leaders indicated their
willingness to offer more than the Rs10 billion bid from Blue World City and requested
a prompt meeting with federal officials to present a comprehensive proposal and
vision for PIA.
Read
More PIA’s
operational fleet shrinks to 16 aircraft for domestic and international flights
However, KP’s offer may conflict
with the terms of the privatization agreement established under a $7 billion,
37-month bailout with the International Monetary Fund (IMF), initiated in
September. This IMF-backed plan includes the divestiture of over 51 percent of
PIA’s shares and aims to mitigate the financial burdens posed by state-owned
enterprises.
Source: Express Tribune