ISLAMABAD: Prime Minister Shehbaz Sharif announced that the bidding process of Pakistan International Airlines (PIA), the first state-owned entity in line for divestment under the policy framework, will take place on December 23.
State-run media reported that the prime minister made the announcement during a meeting with all business figures and company representatives participating in the national carrier’s privatisation.
The remarks come as Islamabad presses ahead with a fresh attempt to privatise the national flag carrier, a key condition under Pakistan’s $7 billion International Monetary Fund (IMF) bailout.
The government’s earlier bid to privatise the entity failed as a $36 million bid from a real estate firm fell short of the $305m floor price, with concerns over debt, staffing, and limited control.
This time, the government is offering full divestment, has scrapped the sales tax on leased aircraft, and is providing limited protection from legal and tax claims. Around 80% of the airline’s debt has been transferred to the state.
During today’s meeting, the premier stressed that transparency and merit were the government’s foremost priorities, and the bidding will be shown live across the country.
He said the privatisation process was progressing smoothly to restore PIA’s lost identity and align the national airline with modern requirements. “God willing, PIA will soon once again live up to its tradition of being ‘Great People to Fly With’,” he added.
The prime minister noted that the restoration of PIA’s global flight operations would benefit overseas Pakistanis, emphasising that modernising the airline was equally vital for advancing Pakistan’s tourism sector.
“To strengthen tourism, it is essential to bring the national airline in line with contemporary demands,” he remarked.
PM Shehbaz expressed confidence that whichever bidder takes charge after the process would “focus all energies on restoring PIA’s reputation and driving its progress.”
According to the statement, participants commended the government for adopting a professional and transparent mechanism for the airline’s privatisation.
“We’re targeting Rs86bn in privatisation proceeds this year,” Privatisation Minister Muhammad Ali told Reuters last month. “For PIA, in the last round of bidding, 15% of the proceeds were going to the government, with the rest staying within the company.”
Meanwhile, renewed efforts have attracted interest from local business groups — including Airblue, Lucky Cement, Arif Habib Group, and Fauji Fertiliser — with final bids expected later this year.
The PIA resumed flights to the United Kingdom, more than five years after a ban over a fake pilot licence scandal was lifted in July. Its European flights were resumed in January after a four-year ban.
Last month, the Privatisation Division secretary told the National Assembly’s standing committee that the government plans to hold the final bidding for PIA by mid-December.
Briefing the panel, the secretary said that four pre-qualified consortia are currently in the final stage of negotiations over commercial terms.
He said that talks are underway with the pre-qualified bidders on the share purchase and shareholders’ agreements. Pre-bid qualification talks have been continuing for the past three days, while approval of the reserve price will be sought from the federal cabinet, the secretary said.
