As Pakistan International Airlines (PIA) moves closer to its December 23 privatisation auction, all four shortlisted consortia have sought daily access to operational and financial records from the national flag carrier and the Privatisation Commission.
According to the sources, the privatisation process has entered its final and most critical phase. Representatives of the bidding consortia met senior PIA management, including the airline’s chief executive officer, on Saturday to review key operational, financial and administrative matters. The meeting focused on route performance, cost structures and workforce details as bidders prepare to submit final offers.
Officials provided the consortia with comprehensive documentation covering both domestic and international routes, as well as data on current and retired employees. Sources confirmed that the government has assured bidders that pension liabilities for retired staff will remain with the state and will not transfer to the consortium that acquires the airline.
Government Directs Full Cooperation and Transparency
The Prime Minister’s Secretariat has instructed PIA management to extend full cooperation to all four consortia and to share complete and timely information ahead of the auction, the sources added. The directive aims to ensure a smooth and credible bidding process as investor scrutiny intensifies.
Prime Minister Shehbaz Sharif reiterated last week that the entire bidding process would be broadcast live and conducted in a transparent and merit-based manner. He described transparency and fairness as the government’s top priorities in the sale of the loss-making airline.
In a separate statement, the Prime Minister’s Office said the privatisation process was progressing smoothly and formed part of broader efforts to restore PIA’s “lost glory” and modernise its operations to meet international standards.
Improved Terms After Earlier Failed Sale Attempt
The government’s renewed push follows a failed privatisation attempt earlier this year, when a $36 million bid from a real estate firm fell far below the $305 million floor price. That effort collapsed amid investor concerns over PIA’s heavy debt burden, bloated workforce and limited management control.
This time, the government has revised the terms significantly to attract stronger bids. It is offering full divestment of the airline, scrapping sales tax on leased aircraft and providing limited protection against legal and tax claims. In addition, around 80% of PIA’s outstanding debt has been transferred to the state, easing pressure on prospective buyers.
Operational Recovery Boosts Investor Interest
PIA’s recent operational improvements have also strengthened investor confidence. The airline resumed flights to the United Kingdom after more than five years, following the lifting of a ban linked to the fake pilot licence scandal in July. It also restarted European operations in January after a four-year suspension.
These developments have drawn interest from major local business groups, including Airblue, Lucky Cement, the Arif Habib Group and Fauji Fertiliser. Final bids are expected next week as Pakistan moves closer to a landmark privatisation decision.
