Government plans to auction 75% stake in Pakistan International Airlines (PIA)
The government plans to auction a
75% stake in Pakistan International Airlines
(PIA), with most of the proceeds earmarked to revive the loss-making national
carrier.
Prime
Minister’s Adviser on Privatisation, Muhammad Ali, informed a Senate committee
that 92.5% of the sale proceeds would be reinvested in PIA’s turnaround.
Despite this, the airline is expected to require an additional Rs80 billion
after privatization to stabilize operations and support fleet expansion.
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PIA currently operates a fleet of 18 aircraft and needs fresh capital to induct new planes. Only the airline’s core aviation business will be privatised, while non-core assets — including New York’s Roosevelt Hotel — will remain under government ownership and may be developed through joint ventures.
The reference price for the bidding
process has yet to be determined. Privatization Commission Secretary Usman
Bajwa said the government could sell up to 100% of PIA shares, depending on
investor interest.
Key obstacles to the privatization
process, including Rs33 billion in liabilities and pending tax issues, have
been resolved. The resumption of European and UK routes has strengthened PIA’s
commercial prospects, and negotiations with potential investors are now in
their final stages.
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Separately, gas-fired power plants at Guddu and Nandipur are also set for privatisation, with a ministerial committee finalizing proposals.
Source: Bloom Pakistan