ISLAMABAD: Pakistan is considering a government-to-government (G2G) sale of Pakistan International Airlines (PIA) after a failed attempt to privatize the struggling national flag carrier. This decision comes after the Cabinet Committee on Privatisation (CCoP), led by Deputy Prime Minister and Foreign Minister Ishaq Dar, rejected a PKR 10 billion bid from Blue World City, which was significantly below the minimum price of PKR 85.03 billion, according to an official source.
The rejected bid, which sought a 60% stake in PIA, has prompted the government to explore alternative strategies, including direct G2G arrangements with nations such as Qatar, China, and Gulf states. These countries, which have a history of financial support to Pakistan, could play a crucial role in the airline’s future privatization efforts.
In tandem with G2G negotiations, the government has not ruled out continuing with conventional privatization options. The next step is for the federal cabinet to make a final decision on PIA’s future course.
PIA, burdened by PKR 200 billion in liabilities, has not seen profitability for nearly two decades. To make the airline more attractive to investors, the government is contemplating making it debt-free, having already transferred around 75% of its $3 billion debt to state accounts during previous privatization attempts.
“This is another setback in efforts to privatize PIA,” an official commented. “The government must reassess terms and identify new ways to enhance investor interest in the airline.”
Meanwhile, the CCoP established a special committee co-chaired by the Minister of State for Finance to assess options for privatizing PIA-owned Roosevelt Hotel in New York. It also instructed relevant authorities to finalize the sale of Services International Hotel ahead of the next meeting. Key ministers and federal secretaries from various divisions participated in the discussion.
The developments mark yet another turning point in Pakistan’s ongoing struggle to manage its national airline while seeking a financially sustainable solution.
