ISLAMABAD: The federal government is gearing up to offer a 75% stake in Pakistan International Airlines Corporation Limited (PIACL) to bidders by October 2024. The successful bidder will be required to invest a hefty $500 million within the first three years following the airline’s privatisation. This significant move was revealed during a Senate Standing Committee on Privatisation meeting, chaired by Senator Muhammad Tallal Badar on Thursday.
According to the privatisation secretary, six parties have been pre-qualified to enter the bidding race. These include Fly Jinnah Limited, Air Blue Limited, Arif Habib Corporation Limited, and three consortia led by Y.B. Holdings (Private) Limited, Pak Ethanol, and Blue World City.
During the meeting, the committee was given a stark reminder of PIACL’s financial struggles. The airline has been grappling with a mountain of liabilities, amounting to Rs499 billion since 2015, with a staggering Rs75 billion loss reported just in 2023. The airline’s total liabilities have now soared to Rs825 billion, far outweighing its assets, which stand at just Rs161 billion.
The privatisation secretary also provided a broader overview of the commission’s activities over the past five years. While Rs4, 389 million was generated through the sale of state-owned enterprises (SOEs), the expenses incurred amounted to Rs1, 992 million. The secretary also highlighted delays in other privatisation transactions, including the halted deals for Pakistan Steel Mills and the Jinnah Convention Center.
Senator Tallal Badar, the committee chairman, underscored the significance of the PIA privatisation for the future of privatisation efforts and the overall economy. He expressed optimism that the process would be completed within the next two months, opening the door for healthy competition in Pakistan’s airline industry once the privatisation is finalised.
