PIA
The Privatization Commission of Pakistan has announced a one-month extension for the auction of Pakistan International Airlines (PIA), moving the bidding date to October 31. This extension provides additional time for interested parties to engage in the bidding process, a crucial step in the ongoing efforts to privatize the struggling national carrier.
In conjunction with the auction date extension, the deadline for signing the draft agreement has also been postponed to October 25. Additionally, prospective bidders now have until October 28 to deposit the required advance payment to participate, a significant shift from the previous deadline of September 27.
This new timeline aims to encourage broader participation in the bidding process, giving investors more time to prepare their proposals.
During a recent meeting with the Standing Committee on Privatization of the National Assembly, chaired by Farooq Sattar, the secretary of the Privatization Commission outlined the current status of the PIA privatization process, which commenced in November 2023.
He stated that the process is in its final stages, with investors nearing completion of their preparations for bidding. The successful bidder will be obligated to invest between Rs65 to 70 billion and will be tasked with expanding PIA’s fleet from the current 18 aircraft to 45 within three years.
The secretary also addressed the issue of retaining the existing staff of PIA, indicating that they would be kept on for two to three years post-privatization.
However, any alterations to the airline’s routes will require government approval, emphasizing the regulatory oversight involved in the transition.
Moreover, discussions are underway regarding the lifting of a European ban on PIA, with steps being taken to facilitate the resumption of flights to Europe. Committee member Sahar Kamran has called for the draft agreement to be presented for committee review, to ensure thorough scrutiny before final approval. The secretary confirmed that the draft has been shared with potential investors and is awaiting cabinet approval.
An important aspect of the privatization process is the pension liabilities for retired PIA employees, which amount to Rs35 billion. The government has committed to covering these pension obligations, having already infused Rs800 billion into PIA to address its debt, which has now been reduced to zero.
The CEO of PIA reassured the committee that the airline currently meets the highest international safety standards and expressed optimism about resuming flights to the UK soon. He highlighted the need for new investors to recruit additional cabin crew and IT personnel to support the airline’s operations.
Chairman Sattar expressed satisfaction with the accelerated privatization process of PIA compared to other state-owned entities.
He underscored the necessity of protecting employee rights during this transition, assuring that there would be no cuts to salaries or allowances for PIA employees, reflecting a commitment to maintaining workforce stability throughout the privatization effort.
I am a dynamic professional, specializing in Peace and Conflict Studies, Conflict Management and Resolution, and International Relations. My expertise is particularly focused on South Asian Conflicts and the intricacies of the Indian Ocean and Asia Pacific Politics. With my skills as a Content Writer, I serve as a bridge between academia and the public, translating complex global issues into accessible narratives. My passion for fostering understanding and cooperation on the national and international stage drives me to make meaningful contributions to peace and global discourse.
