- Four consortia begin final stage negotiations on the sale of PIA.
- Cabinet approval of the PIA reserve price is expected soon.
- The committee recommends five years of job security for PIA staff.
The government plans to conduct the final tender for Pakistan International Airlines (PIA) by mid-December, the Privatization Division secretary told the standing committee of the National Assembly on Wednesday.
Addressing the panel chaired by MP Farooq Sattar, the secretary said four pre-qualified consortia are currently in the final stage of negotiations on commercial terms, News reported.
He said discussions were ongoing with pre-qualified bidders on share purchases and shareholder agreements. Pre-bid negotiations have been going on for three days, while approval of the reserve price will be sought from the federal cabinet, the secretary said.
In early July, the Privatization Commission board shortlisted four bidders: Fauji Fertilizer Company Ltd, Air Blue (Pvt) Ltd, a consortium comprising Lucky Cement, Hub Power Holdings, Kohat Cement and Metro Ventures, and a consortium led by Arif Habib Corporation with Fatima Fertiliser, City Schools and Lake City Holdings. On November 7, the board of directors approved the inclusion of AKD Group Holdings (Pvt) Ltd in the consortium led by Arif Habib.
During the meeting, Farooq Sattar urged the government to ensure strong job protection for airline employees and transparency in the sales process. Notably, the previous PIA reserve price was set at Rs85 billion. “The airline must be sold, but employee protection must be guaranteed,” he said.
The committee recommended at least five years of job protection for PIA employees and comprehensive guarantees for retirees.
Officials said PIA currently operates 18 aircraft and will need 35-38 more for sustainable operations, with future owners required to retain experienced staff.
The Additional Secretary of the Power Division revealed to lawmakers for the first time that the government was considering transfer of DISCOs under long-term concession agreements instead of full privatization, on the Turkish model.
These agreements would hand management responsibilities to private entities for a potential period of up to 25 years, allowing for investments and infrastructure improvements.
In the first phase, the government plans to privatize power supply companies in Islamabad, Gujranwala and Faisalabad, but the issuance of their tenders has been delayed, with officials saying the process is expected to reach an advanced stage by March.
The Electricity Division told the committee that all three-phase meters in the country will be replaced with AMI meters by December 2026 to combat electricity theft. He said 1.5 million AMI meters have been installed in the Iesco region, reducing electricity losses by 2%.
Addressing the 33-year delay in the privatization of the Pakistan Engineering Company (Peco), Farooq Sattar asked why it remained stalled. Officials said the prime minister had placed Peco under the Special Investment Facilitation Council (SIFC).
The committee requested a formal progress report from the SIFC, while the Privatization Division noted that it was responding to the council’s requests rather than initiating them. The committee was also briefed on the privatization of the Roosevelt Hotel in New York. Meanwhile, officials from the Ministry of Industry and Production confirmed that all pending dues of utility store employees have been cleared.
