The Minister of Privatization Abdul Aleem Khan, announced Thursday that the privatization of the national carrier of losses, Pakistan International Airlines (PIA), would be completed in the three months.
“The federal minister also mentioned that to make the privatization of the PIA more attractive, a new roadmap is provided and it is expected that all the stages of this privatization process will be completed in the next three months,” Khan’s office said in a statement.
The Minister said that with the introduction of PIA flights to Europe, the privatization process has become more attractive to investors.
Khan expressed his confidence that there would be a greater interest on the part of potential investors this time. “The national airline is ready to become profitable again due to recent reforms,” added the press release.
In the last tender process for the privatization of the PIA held in October 2024, only one offer was received, $ 36 million for a 60%stake, well below the minimum government price of 85 billion rupees.
Although six groups were pre-qualified for the tender, the only participant was Blue World City, a real estate development company.
Potential bidders have raised concerns concerning the continuity of policies, the honorary of contracts, the inconsistent communication of the government, the unattractive conditions, the taxes on the sector and the questions inherited from the PIA.
Cumulative loss of the airline is estimated at nearly $ 3 billion, while its total asset evaluation amounts to around $ 572 million.
Khan also revealed that PIA flights to the United Kingdom would begin in three months, which more stimulated the prospects of the airline. The PIA resumed its activities in Europe last year after the European Union Aviation Safety Agency (EASA) raised its 2020 ban on the airline.
The prohibition had been imposed on concerns about the security of pilot licenses and the capacity of Civil Aviation Authority (PCAA) to comply with international aviation standards.
Following a deadly plane accident in 2020 which killed 97 people, the EASA and the United Kingdom authorities suspended PIA operational authorizations.
“The Minister of Privatization underlined that there was an expectation of better expressions of investors this time, because the introduction of PIA flights to Europe made the environment of privatization even more lucrative and favorable,” the statement said. “Due to recent measures, the national airline is ready to become profitable again.”
