PIA privatization gains momentum as Privatization Commission clears four bidders

The PC Board’s decision is a major milestone in the government’s economic reform agenda
 

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

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