Pakistan (Commonwealth Union)_ According to the latest media reports, Pakistan International Airlines’s (PIA) long-awaited privatisation process is anticipated to commence in early August 2024. This announcement follows an extension of the deadline for expression of interest by a couple of weeks, during which eight companies and consortiums expressed their initial interest. Additionally, sources indicate that six companies have now been finalized for the privatisation process and have formally requested comprehensive information regarding PIA’s financial status.
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According to reports, the shortlisted entities, namely Air Blue, Arif Habib Corporation, Blue World City, Fly Jinnah, Pak Ethanol (Pvt) Consortiums, and YB Holdings Consortiums, have been finalized, as per the statement from the office of Abdul Aleem Khan. Simultaneously, authorities are diligently furnishing the essential information and data requested by the consortium of shortlisted companies. Further, the reports also highlight that a consortium of six companies has been pre-qualified for the privatisation of Pakistan International Airlines (PIA). These pre-qualified companies are now eligible to take part in the forthcoming bidding process for PIA.
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Furthermore, decisions were formalised during a Privatization Commission Board meeting, presided over by Federal Privatization Minister Aleem Khan, where he reasserted the government’s resolute commitment to ensuring a transparent and effective privatisation process for all state-owned enterprises, particularly those facing substantial financial losses. To maintain utmost transparency and bolster stakeholder confidence, Khan proposed live broadcasting of the privatisation process across various media platforms.
Last month, Prime Minister Shehbaz Sharif of Pakistan ordered concerned officials to accelerate the privatisation of PIA, Pakistan Steel Mills (PSM), and other financially troubled state-owned entities. The directive came during a high-level meeting convened in Islamabad to review progress on privatisation efforts and to urge immediate measures aimed at strengthening institutions tasked with economic revival and expedited delivery of assistance to the populace. According to earlier reports, the caretaker government of Pakistan, in collaboration with financial institutions, had devised a plan to restructure the debt burden of the ailing Pakistan International Airlines (PIA).
Furthermore, Finance Minister Muhammad Aurangzeb had earlier highlighted the anticipated timeline for PIA’s privatisation, noting a projected conclusion by late June or early July, with subsequent consideration for Islamabad airport and potentially others. Speaking at a media briefing held at the Pakistan Embassy in Washington, DC, Aurangzeb stated, “We expect the bids for PIA to come in the next two to three weeks, and by the end of June or early July, we can move it to the investors. The Islamabad airport would be the next, followed by the airports in Karachi and Lahore.” Additionally, Bilal Azhar Kay, Coordinator to Prime Minister Shahbaz Sharif on Economy and Energy, and Member of Pakistan’s National Assembly, affirmed during a meeting that the Privatization Commission would soon decide on the government’s share sale as the PIA privatisation process approaches its conclusion.
