ISLAMABAD: In a recent federal cabinet meeting chaired by Prime Minister Shehbaz Sharif, significant strides in the privatization process of Pakistan International Airlines (PIA) were announced. Officials briefed the cabinet on the progress of privatizing state-owned institutions, highlighting PIA as a focal point.
According to the officials, potential bidders for PIA have been actively visiting various sites of the national airline in preparation for the upcoming bidding process. It was further disclosed that the bidding for PIA is scheduled to commence in the first week of August. Prime Minister Shehbaz Sharif emphasized expediting the privatization process and ensuring complete transparency throughout.
The federal government has set an ambitious target of raising Rs30 billion through privatization efforts in the financial year 2024-25. This initiative forms part of a broader plan to privatize 25 state-owned enterprises, which includes entities like Roosevelt Hotel, First Women’s Bank, Utility Stores Corporation, and several electricity distribution companies.
Under the Standby Arrangement with the IMF, the federal government’s second and final review in May 2024 outlined its commitment to privatize PIA’s core business by June 2024, aiming to sell a 51% stake. This move is seen as crucial in the government’s strategy to streamline operations, improve efficiency, and attract private investment into the national carrier.
The privatization of PIA represents a pivotal step in Pakistan’s economic reform agenda, aimed at reducing fiscal pressures and enhancing the competitiveness of state-owned enterprises in the global market. As preparations intensify for the bidding process, stakeholders are closely watching developments that could reshape the future of Pakistan’s aviation industry.
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