Privatization Commission pre-qualifies four
bidders for PIA's sale
The long-awaited privatization of Pakistan
International Airlines (PIA) took a major step forward on July 9, as the Privatization
Commission (PC) Board officially prequalified four bidders
for the national carrier’s sale. The decision marks a critical phase in the
government’s broader strategy to reform and revive struggling state-owned
enterprises.
During its 237th meeting, chaired by Muhammad Ali,
Adviser to the Prime Minister on Privatization, the Board reviewed Statements of
Qualification (SOQs) submitted by five interested parties.
After a thorough evaluation by the Prequalification Committee, based on
financial, technical, and documentary criteria, four bidders were approved to
proceed.
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Prequalified Bidders for PIA Sale:
1.
Consortium 1: Lucky Cement Ltd, Hub Power Holdings Ltd,
Kohat Cement Company Ltd, and Metro Ventures (Pvt) Ltd
2.
Consortium 2: Arif Habib Corporation Ltd, Fatima
Fertilizer Company Ltd, City Schools (Pvt) Ltd, and Lake City Holdings (Pvt)
Ltd
3.
Fauji Fertilizer Company Ltd
4.
Air Blue (Pvt) Ltd
These prequalified parties will now enter the buy-side due
diligence phase, where they will conduct in-depth evaluations
of PIA’s operations, financials, liabilities, and future potential. This phase
is considered essential to ensure transparency, attract credible investment,
and lay the groundwork for a competitive bidding process.
Broader Economic Reform
The PC Board’s decision is a major milestone
in the government’s economic reform agenda. The privatization of PIA is aimed
at relieving the public treasury of recurring losses while bringing in
strategic investors with the capability to restructure the airline into a
sustainable and efficient operation.
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Roosevelt Hotel Deal Moves Forward
In a parallel move, the Board also finalized
its recommendation for the future of Pakistan’s Roosevelt Hotel
in New
York. After considering three options—outright sale, long-term
lease, and a joint venture—the Cabinet Committee on Privatization (CCOP)
approved the joint venture model. This structure is expected to
deliver better long-term value, minimize financial risk, and provide greater
flexibility for Pakistan in managing the asset.
A Shift Toward Transparency and Investor
Confidence
These
developments reflect the government's renewed commitment to transparent,
investor-friendly
privatization. With the PIA sale gaining pace, hopes are rising
that the national airline may soon be on a path to commercial recovery and
long-term viability.
Source: pkrevenue.com