The privatisation of Pakistan International Airlines (PIA) is gaining momentum, clearing the way for the airline’s potential sale. With the official bidding date approaching, PIA’s 6,500 employees are reportedly growing increasingly anxious about their job security and future prospects.
Bidding Process and Transparency Measures
The government has confirmed that the bidding process is scheduled for December 23. Prime Minister Shehbaz Sharif announced that the proceedings would be broadcast live on national television. This step aims to ensure transparency and maintain public trust throughout the privatisation process.
Currently, four firms have prequalified to participate in the bidding. Analysts believe that these companies are closely evaluating PIA’s financial health and potential profitability before submitting formal bids.
Reserve Price Likely to Increase
Financial experts suggest that the government may raise the reserve price for PIA based on projected profits and financial models prepared by the prospective board. Last year, the reserve price was set at Rs85 billion. However, due to the airline’s performance this year, it is now expected to range between Rs90 billion and Rs100 billion.
PIA has already recorded a pre-tax profit of Rs11 billion in the current financial year, strengthening buyers’ confidence in the airline’s revival potential. The positive earnings have generated optimism among investors who believe they can successfully modernize and expand the airline.
Employee Concerns and Market Sentiment
Despite strong financial performance, employees remain apprehensive about job stability after privatisation. Uncertainty around management changes and corporate restructuring contributes to growing anxiety within the workforce.
Meanwhile, market analysts remain optimistic about PIA’s future under private ownership. They suggest that new management could implement efficiency measures, increase operational effectiveness, and enhance profitability. Such improvements may also restore the airline’s reputation and competitiveness in both domestic and international markets.
