ISLAMABAD: The government has extended the deadline for submitting expressions of interest (EOIs) to purchase the Pakistan International Airlines (PIA), says a statement released by the Ministry of Privatisation.
Previously, the deadline had been set for June 3, with the bidding process expected to occur between October and December this year.
The first attempt to privatise PIA was unsuccessful and reportedly cost the national exchequer $4.3 million, as revealed to the National Assembly Standing Committee on Privatisation on Feb 26.
In March, Minister for Privatisation and Investment Abdul Aleem Khan announced that the government aimed to complete all necessary steps for PIA’s privatisation by May.
The Privatisation Commission subsequently approved a new transaction structure, allowing for the sale of 51 to 100 percent of the airline’s shares.
Despite its troubled financial history, PIA recently reported its first net profit in over two decades. According to a company spokesperson, the board of directors approved the airline’s 2024 financial results, which showed an operational profit of Rs3.9 billion and a net profit of Rs2.26 billion.
PIA has struggled financially since 2011, relying on government subsidies. By the end of 2016, its debt had reached $3 billion, rising further to $3.3 billion by 2018. Continued bailouts were necessary to keep the airline operational.
As part of a $3 billion bailout agreement with the International Monetary Fund (IMF) in June 2023, the government had pledged to reform loss-making state-owned enterprises, including PIA.
However, in February 2024, just before the general elections, the Election Commission advised the caretaker administration to halt any finalisation of the privatisation deal.
