The Privatisation Commission of Pakistan has shortlisted six bidders for the sale of Pakistan International Airlines (PIA). These include 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 PIA auction is set for October 1, following a review meeting on the privatisation process. The commission also mentioned that the bidding criteria would be adjusted to simplify the auction process.
PIA is currently burdened with approximately Rs800 billion ($2.9 billion) in debt, with the government providing multiple bailout packages to sustain its operations.
Originally, the privatisation was aimed to be completed by August 14. However, delays occurred after bidders requested updated financial records, aircraft lease agreements, and details on the airline’s suspended European routes, which have been grounded for nearly four years.
This privatisation aligns with the International Monetary Fund’s (IMF) recommendation for the government to sell unprofitable state-owned enterprises to strengthen the economy.
In parallel, discussions are underway to restore PIA’s flights to Europe, which were suspended after a 2020 Karachi plane crash that claimed 97 lives. The European Union Aviation Safety Agency banned PIA flights due to concerns over pilot licensing. Deputy Prime Minister Ishaq Dar recently emphasized the importance of resolving this issue during a visit to London.
