LAHORE: The Privatisation Commission of Pakistan has pre-qualified six bidders for the sale of Pakistan International Airlines (PIA), including Fly Jinnah, a consortium led by YB Holdings, Air Blue Limited, a consortium led by Pak Ethanol, Arif Habib Corporation, and Blue World City.
The auction for PIA is scheduled for October 1, following a review meeting on the privatisation process for the national air carrier.
In a statement, the commission noted that adjustments to the criteria for bidders would be made to streamline the auction process.
PIA has been grappling with a debt load of around Rs800 billion ($2.9 billion), and the government has extended several bailout packages to cover its operational costs.
The initial target was to complete the privatisation by August 14, but delays occurred as bidders requested updated financial records, aircraft lease agreements, and information on the airline’s suspended European flights, which have been grounded for nearly four years.
This privatisation move aligns with recommendations from the International Monetary Fund (IMF), which has advised the government to sell off loss-making state-owned enterprises to stabilise the economy.
Officials are also discussing the restoration of PIA’s flights to Europe, which were halted after the 2020 plane crash in Karachi that killed 97 people.
The European Union Aviation Safety Agency banned PIA flights following concerns about pilot licensing. Deputy Prime Minister Ishaq Dar recently emphasized the importance of resolving this issue during a visit to London.
