ISLAMABAD: Pakistan International Airlines (PIA) may soon be sold to a foreign government after the Privatisation Commission rejected a bid of Rs10 billion from Blue World Consortium.
Pakistan is aiming to divest between 51% to 100% of its debt-laden national carrier, PIA, as part of broader reforms to its state-owned enterprises under a $7 billion program with the International Monetary Fund (IMF).
According to details, the Privatisation Commission declined the Rs10 billion offer from Blue World Consortium, which had placed the sole bid. Sources suggest that the government is now likely to pursue a sale through a government-to-government (G2G) agreement, with Qatar and Abu Dhabi being the primary contenders.
The Strategic Investment Facilitation Council (SIFC) is reportedly preparing to invite expressions of interest (EOIs) from foreign investors by November 30.
In October, the final bidding round for PIA’s privatisation attracted just one bid — Rs10 billion (about $36 million) for a 60% stake, falling well below the government’s minimum target price of Rs85 billion.
Despite pre-qualifying six groups in June, only Blue World Consortium, a real estate development firm, participated in the bidding process. Sources note that certain terms and conditions are already in place, potentially easing negotiations with Qatar or Abu Dhabi.
I am an experienced writer, analyst, and author. My exposure in English journalism spans more than 28 years. In the past, I have been working with daily The Muslim (Lahore Bureau), daily Business Recorder (Lahore/Islamabad Bureaus), Daily Times, Islamabad, daily The Nation (Lahore and Karachi). With daily The Nation, I have served as Resident Editor, Karachi. Since 2009, I have been working as a Freelance Writer/Editor for American organizations.
