KP Government
The Khyber Pakhtunkhwa (KP) government has expressed its strong interest in participating in the bidding process for the sale of Pakistan International Airlines (PIA), aiming to keep the national flag carrier under the control of the government.
This development was announced on Friday and comes on the heels of a lackluster final bidding round for PIA, which drew only a single bid of Rs10 billion for a 60% stake in the airline, significantly below the government’s minimum price set at Rs85 billion.
The KP government’s engagement follows the pre-qualification of six groups earlier in June, of which only one— a real estate development company— submitted a bid.
The KP’s Board of Investment and Trade (BOIT), in a letter to Privatisation Minister Abdul Aleem Khan, articulated the province’s earnest desire to engage in the bidding process.
The letter stated, “On behalf of the chief minister/chairman and the people of KPK, we would like to express our earnest interest in participating in the bidding process for the sale of PIA.”
The BOIT’s letter emphasizes the importance of keeping PIA within the national fold, as it represents not just a business entity but a symbol of national identity and pride.
Chief Minister Ali Amin Gandapur has mandated that the provincial government actively pursue the acquisition, highlighting the desire to ensure that PIA remains a government-controlled airline rather than falling into private or foreign ownership.
The provincial body has indicated its readiness to make a bid exceeding the current highest offer from the Blue World Consortium.
The KP government has made it clear that it wishes to present a competitive bid, demonstrating their commitment to retain the airline as a state asset, crucial for the country’s identity.
Moreover, the BOIT expressed a desire for a timely meeting with the minister and his team to present a comprehensive proposal detailing their strategic vision for PIA and their capability to offer a substantial bid. “We look forward to your positive response and the opportunity to serve Pakistan in this significant undertaking,” the letter concluded.
The context of this interest aligns with the broader efforts of Prime Minister Shehbaz Sharif’s administration to offload a 51-100% stake in the struggling airline.
This move is part of a larger initiative to raise funds and reform loss-making state-owned enterprises, in accordance with the stipulations of a $7 billion International Monetary Fund (IMF) program aimed at stabilizing Pakistan’s economy.
