Qatar and UAE express interest in privatization of PIA
Gulf nations, particularly Qatar and
the UAE, are reportedly considering involvement in the privatization of
Pakistan International Airlines (PIA), following Pakistani Prime Minister
Shehbaz Sharif’s recent diplomatic visits to the region.
Islamabad is
fast-tracking efforts to privatize PIA through government-to-government (G2G)
agreements, aiming to close the deal by December 31. Sources suggest that both
Abu Dhabi and Qatar have expressed strong interest in acquiring stakes in PIA,
signaling significant foreign investment potential.
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briefs GCC investors about PIA privatization process
“The government is actively
negotiating with Qatar and the UAE to finalize the terms,” ARY News reported.
PIA has suffered losses of
approximately Rs 220 billion ($792 million) over the past four and a half
years, largely due to bans on European routes. The Pakistani government is also
offering substantial incentives through the Securities and Exchange Commission
to attract foreign investors.
Pakistan has been seeking economic
support amid political and financial instability in recent years. In October,
Prime Minister Sharif visited Doha, where he met Qatar’s Amir Sheikh Tamim bin
Hamad Al Thani and other key officials. The discussions focused on
strengthening bilateral ties and investment opportunities.
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Following the visit, Qatar pledged
$3 billion in investments across various sectors, including trade, culture, and
the economy. Prior to Doha, Sharif’s delegation visited Riyadh, where Saudi
Arabia announced an additional $600 million investment, bringing its total
commitment to $2.8 billion.
This potential Gulf involvement in
PIA’s privatization could be a turning point for Pakistan’s struggling aviation
sector, offering a lifeline to the national carrier and boosting the country’s
broader economic outlook.
Source: Doha News