PIA likely to be sold to foreign government via SIFC

Pakistan aims to sell a 51-100% stake in the debt-laden national carrier
 

SIFC to play role in selling of PIA to a foreign government  

Pakistan International Airlines (PIA) may soon be sold to a foreign government through the Strategic Investment Facilitation Council (SIFC), as the Privatization Commission rejected a bid of Rs10 billion from Blue World Consortium.

Pakistan aims to sell a 51-100% stake in the debt-laden national carrier as part of efforts to raise funds and reform state-owned enterprises under a $7 billion International Monetary Fund (IMF) program.

 

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Potential Buyers and Process
Sources reveal that a government-to-government (G2G) agreement is being considered, with Qatar and Abu Dhabi emerging as potential buyers. The Privatization Commission is reportedly preparing to invite expressions of interest (EOIs) from foreign investors by November 30.

Earlier in October, the final bidding process for PIA's privatization attracted just one bid—Rs10 billion ($36 million)—from Blue World City, a real-estate development company. The bid, which offered to acquire a 60% stake, was significantly below the government’s minimum price of Rs85 billion, leading to its rejection.

Terms and Conditions
Insiders suggest that several terms and conditions for the sale have already been outlined to streamline negotiations with potential buyers.

 

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The sale of PIA is a critical part of Pakistan’s broader strategy to reform loss-making state-owned enterprises, reduce public sector debt, and comply with IMF requirements for economic stability.

Source: ARY News

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