Fresh Bidding
ISLAMABAD: The Government of Pakistan is set to initiate a fresh bidding process for the sale of a majority stake—ranging from 51% to 100%—in Pakistan International Airlines (PIA), the Ministry of Privatisation announced on Thursday.
This renewed effort comes just days after the national flag carrier reported its first annual profit in more than two decades, marking a significant turnaround in its financial performance.
According to the ministry, expressions of interest (EOIs) from potential investors will be invited next week as part of the government’s broader strategy to overhaul and divest loss-making state-owned enterprises (SOEs).
The privatisation of PIA has long been a key target under Pakistan’s ongoing $7 billion programme with the International Monetary Fund (IMF), which emphasizes fiscal discipline and structural reforms, including the disposal of underperforming government entities.
Last year’s attempt to privatise PIA ended unsuccessfully, receiving only one offer that fell significantly short of the asking price—reportedly over $300 million.
In response, the government has since made substantial changes to the structure of the transaction, including shifting almost all of PIA’s legacy debt onto the state’s balance sheet. This move was intended to address major concerns raised by prospective bidders during the previous failed attempt.
In a recent statement, Muhammad Ali, Adviser to the Prime Minister on Privatisation, confirmed that all the issues that hindered last year’s sale have now been resolved.
The Privatisation Commission Board has approved new pre-qualification criteria for potential bidders and greenlit the process of seeking fresh EOIs.
The government aims to finalize the airline’s sale before the end of 2025. Prime Minister Shehbaz Sharif had earlier announced a sweeping plan to privatise all non-performing SOEs, including the country’s power distribution companies. Adviser Ali emphasized that these entities are now considered high-priority transactions and that the government is expediting their sale.
In a related development, the government has also enlisted Jones Lang LaSalle (JLL) to advise on strategic options for the PIA-owned Roosevelt Hotel in Manhattan, New York.
These options include either a direct sale or entering into a joint venture with a leading real estate developer—a strategy that could potentially yield returns five times greater than a conventional sale, according to Ali.
The renewed privatisation drive is expected to attract more serious bidders, especially now that PIA has demonstrated improved financial health and operational restructuring.
