Timely
execution in PIA privatization drive urged
Prime Minister Shehbaz Sharif has
called for complete transparency in the privatization of Pakistan International
Airlines (PIA), instructing authorities to ensure the process remains on
schedule and meets all outlined targets.
Chairing a high-level meeting on
Friday to review progress on the PIA privatization, the prime minister
emphasized the importance of investor confidence and stakeholder engagement. He
stressed that transparency must be the cornerstone of the entire process.
Read More Committee established to expedite privatization of Pakistan International Airlines (PIA)
On Thursday, the government officially reopened the bidding process, offering enhanced incentives to attract potential investors. Expressions of interest are due by June 3, with the bidding phase anticipated between October and December. The government is offering a 51% to 100% stake in PIA, including full management control.
A robust investor outreach campaign,
developed with support from consultants, is currently underway to attract
credible bids. During the meeting, officials also briefed the prime minister on
the bidding criteria, timelines, and participation conditions.
Earlier this year, Privatization
Minister Abdul Aleem Khan had signaled a goal of completing the PIA sale
process by May. However, delays followed an earlier failed attempt when the
Blue World City consortium’s Rs10 billion offer fell significantly short of the
government’s Rs75 billion valuation.
Read More Privatization
Commission suggests tightening of criteria for PIA bidders
That setback cost the national exchequer approximately $4.3 million, paid to Ernst & Young (EY), the appointed financial adviser, as part of a $6.8 million fee. Despite this, the government now aims to finalize the privatization by the end of 2025, aligning the effort with broader IMF-backed economic reforms.
Source: Profit Pakistan