An overseas Pakistani business group has formally offered over Rs 1.25 trillion to acquire Pakistan International Airlines (PIA) as part of the country’s efforts to privatize loss-making state-owned enterprises and address its economic challenges.
In a letter addressed to three key Pakistani ministries, Al Nihang Group CEO Muhammad Ali Faqir proposed an offer of Rs 100 billion for the national carrier. He highlighted the group’s intent to invest in PIA’s restructuring and revitalization, emphasizing the potential to enhance the airline’s operational efficiency and market position.
Pakistan, facing severe financial strain, is looking to sell a 51-100% stake in the debt-ridden PIA to raise crucial funds as part of its obligations under a $7 billion International Monetary Fund (IMF) program aimed at economic stabilization.
This offer comes after the government’s recent failed attempt to attract substantial bids for the airline during an October 31 auction. The Privatisation Commission had received only a Rs 10 billion bid for PIA, significantly lower than its Rs 85 billion valuation.
The proposal was sent via email to the ministers of privatisation, aviation, and defense, as well as the Establishment Division. According to Faqir, the group’s vision for PIA involves improving its operational capabilities, expanding its revenue streams, and positioning the airline as a leader in the regional aviation market.
The group plans to focus on enhancing PIA’s engineering and technical services, exclusive cargo operations, and aviation training and development. Faqir’s proposal outlines how these initiatives would not only revitalize the airline but also boost foreign exchange inflows and contribute to Pakistan’s overall economic growth by fostering international business and partnerships.
