Pakistan to publish Expression of Interest (EOIs) for sale of PIA this month
Pakistan will not meet the July 2025 deadline set by the International Monetary Fund (IMF) for the privatization of Pakistan International Airlines (PIA). The country’s Privatization Adviser, Muhammad Ali, confirmed that the process will now be extended, with a new target of December 2025 for the completion of the sale.
This delay follows last year’s
failed privatization attempt, when PIA received only one offer, which was far
below the asking price of more than USD 300 million. The new timeline includes
provisions to ensure employee rights and maintain service continuity, addressing
concerns from airline unions and other stakeholders.
A fresh Expression of Interest (EoI)
for potential bidders will be published in the last week of April 2025.
Interested parties will begin evaluating PIA’s assets and balance sheet in
July, with the bid evaluation process continuing until September.
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The privatization plan involves the
sale of 51% to 100% of PIA’s share capital, along with management control. The
structure for this second attempt at privatization has been approved by the Privatization
Commission Board, following a meeting chaired by Muhammad Ali.
Despite the setbacks of last year,
there has been renewed interest from major business groups in the airline’s
privatization, with reports indicating significant attention from potential investors.
In addition to PIA, the Privatization
Commission Board also discussed the fate of the Roosevelt Hotel in New York,
which is owned by the airline. A financial advisor will be consulted before
proceeding with its sale.
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court sends notices to government ministries against proposed PIA privatization
This move is part of Pakistan’s
broader efforts to privatize state-owned enterprises as part of the economic
reforms requested by international lenders. The privatization of PIA is seen as
crucial for reducing the financial strain on the national budget, as the
airline has been operating at a loss for years, amassing substantial debt.
Officials hope that private ownership will restore operational efficiency and
financial stability, allowing the government to focus its resources on other
essential public services.
Source: https://aviationa2z.com/