Pakistan’s privatisation of PIA sees three bids, a key test for government efforts to sell loss-making state firms under an IMF programme.
ISLAMABAD: Pakistan received three bids on Tuesday for the privatisation of its embattled national carrier, Pakistan International Airlines (PIA).
The bidding process, broadcast live, is seen as a litmus test for Islamabad’s efforts to sell loss-making state firms.
Prime Minister Shehbaz Sharif told his cabinet it was essential to make the process transparent.
“The biggest transaction of Pakistan’s history is about to take place,” he said in a televised statement.
Representatives from three consortiums placed bids for a 75% stake in the airline.
One bid is led by private carrier Air Blue, another by Lucky Cement, and a third by investment firm Arif Habib.
The government will unveil a reference price for PIA on Wednesday and announce a winner if the minimum is met.
This sale offer follows a failed attempt last year that attracted just one bid of USD 36 million, far below the government’s USD 300–305 million target.
PIA, long accused of being bloated and poorly run, has seen funds dry up as the government grapples with a balance of payments crisis.
The airline reported a net loss of USD 437,000 on revenue of USD 854,000 for the full year 2022 before being delisted.
Islamabad has pledged to divest dozens of cash-burning state enterprises by 2029 under a USD 7 billion loan programme agreed with the International Monetary Fund in 2024.
Many companies have incurred billions in losses due to mismanagement and corruption.
Founded in 1955, PIA was once a symbol of national pride but its reputation has suffered from financial losses and safety lapses.
It was banned from flying to the European Union, Britain and the United States in June 2020 after a fatal crash killed nearly 100 people.
While Europe and Britain allowed flights to resume this year, operations to the US have not yet restarted.
Officials state just 18 of its fleet of 34 planes are currently in active service.
