Privatization of PIA enters final phase
As the December 23 auction of Pakistan
International Airlines (PIA) draws closer, all four bidding consortia have
requested access to the airline’s daily operational and financial records from
PIA management and the Privatisation
Commission.
According to the sources, the privatization of
the national flag carrier has now entered its final stage. Representatives of
the bidding consortia met with PIA’s chief executive officer and senior
officials on Saturday to review key operational and financial matters.
The bidders have reportedly been provided with
detailed records covering PIA’s domestic and international routes, as well as
information on both serving and retired employees. However, sources clarified
that the responsibility for paying pensions to retired staff will not fall on
the consortium that ultimately acquires the airline.
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The Prime Minister’s Secretariat has directed PIA to ensure full cooperation with all four consortia and to share all required information ahead of the bidding process scheduled for December 23.
Prime Minister Shehbaz Sharif said on Thursday
that the entire bidding process would be broadcast live and conducted in a
transparent and merit-based manner, stressing that transparency remains a top
government priority. The Prime Minister’s Office also stated that the privatization
process is progressing smoothly and aims to restore the airline’s “lost glory”
while aligning it with modern aviation standards.
An earlier attempt to privatize PIA failed
when a $36 million bid from a real estate firm fell well below the $305 million
floor price, amid concerns over heavy debt, excess staffing, and limited
operational control. This time, the government is offering full divestment, has
abolished sales tax on leased aircraft, and is providing limited protection
against legal and tax liabilities. Approximately 80% of PIA’s debt has been
shifted to the state.
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In recent developments, PIA has resumed
flights to the United Kingdom after more than five years, following the lifting
of a ban linked to the fake pilot licence scandal in July. Flights to Europe
were also restored in January after a four-year suspension.
The
renewed privatization push has attracted interest from several local business
groups, including Airblue, Lucky Cement, Arif Habib Group, and Fauji
Fertiliser, with final bids expected next week.
Source:
Geo News