Privatization of national carrier enters a pivotal stage
Pakistan
International Airlines (PIA) has entered a pivotal stage in its
long-running privatization process, with four bidders formally pre-qualified to
move to the next round of the transaction.
The development was shared during a
meeting of the National Assembly’s
Standing Committee on Privatization, chaired by MNA Muhammad Farooq Sattar,
where officials outlined progress across several state-owned asset divestments.
The shortlisted bidders include the Lucky Cement Consortium, the Arif Habib Corporation Consortium, Fauji Fertilizer Company Limited, and Air Blue Limited.
Read More Bidders
demand full ownership as PIA privatization approaches
According to officials, the government has already approved the transaction structure, allowing pre-qualified parties to begin examining PIA’s operational and financial data. Negotiations will now turn to commercial terms, marking what authorities describe as the second major push to privatize the loss-making national carrier.
The committee pressed the Privatisation Commission to submit a
clearer timeline at its next meeting, urging faster progress. Lawmakers also
emphasized the need to safeguard employee rights, calling for robust
protections covering job security, pensions, and post-privatization benefits.
With pre-qualification complete,
bidders now have access to PIA’s Virtual Data Room and are expected to conduct
site visits ahead of a pre-bid conference. The government reiterated that the
divestment entails selling 51% to 100% of shares, along with full management
control.
Employee considerations
Members of the committee directed
ministries to keep communication channels open with unions and staff
associations to avert disputes and ensure a smoother transition when a
strategic investor takes over. They also stressed merit-based retention and
performance-driven staffing for the restructured airline.
Read More PIA
bidders reject preconditions for investment
Wider privatization updates
The session also reviewed progress
on other state assets, including the Roosevelt Hotel in New York,
where the government has approved a Joint Venture model following due diligence.
Seven firms have submitted proposals for the appointment of a financial advisor
for the hotel’s restructuring.
In the energy sector, officials
briefed lawmakers on the phased privatization of GENCOs under the 2024–29
programme. Only operational plants—Guddu (747 MW) and Nandipur (525 MW)—will be
offered for sale, while older, non-operational units may be removed from the
list.
The meeting was attended by MNAs and
senior officials from the Ministry of Privatization, PIA Corporation Limited,
and the Power Division, reflecting sustained political focus on the future of
the national flag carrier and the government’s broader divestment agenda.
Bottom line
PIA’s privatization has reached a critical juncture, with four bidders now advancing to detailed evaluations. As scrutiny intensifies, the process will hinge on transparency, employee protections, and steering the airline toward long-delayed financial stability.
Source: https://aviationa2z.com/