ISLAMABAD: Prime Minister Shehbaz Sharif announced on Wednesday that the bidding process for Pakistan International Airlines will occur on December 23. He made the announcement during a meeting with business leaders and company representatives involved in the airline’s privatisation.
Fresh Push to Meet IMF Requirements
The government continues its renewed effort to privatise the national carrier, which remains a major requirement under Pakistan’s $7 billion IMF programme. Islamabad aims to complete the sale after an earlier attempt failed when a $36 million bid fell far below the $305 million floor price. Debt concerns, staffing issues, and limited buyer control contributed to the collapse of that effort.
Improved Terms for Buyers
However, the government has now offered full divestment and removed the sales tax on leased aircraft. It has also provided limited protection from legal and tax claims. Moreover, around 80 percent of the airline’s debt has shifted to the state, creating more favourable conditions for bidders.
Transparency Stressed During Meeting
During the meeting, the prime minister stressed that transparency and merit will guide the process. He said the bidding will air live nationwide to ensure an open procedure. He added that the ongoing privatisation aims to restore PIA’s lost identity and align its operations with modern global standards. He expressed hope that the airline would soon reclaim its status as “Great People to Fly With.”
Focus on Tourism and Overseas Pakistanis
Furthermore, the prime minister said that restoring PIA’s international operations will help overseas Pakistanis. He added that modernising the carrier remains essential for strengthening Pakistan’s tourism sector. He stressed that a revitalised airline would support broader economic activity.
Business Community Shows Interest
He also expressed confidence that the winning bidder will work to rebuild PIA’s reputation and improve its performance. Participants at the meeting praised the government for adopting a professional and transparent mechanism.
Privatisation Minister Muhammad Ali told Reuters last month that the government aims to raise Rs86 billion in privatisation proceeds this year. He said that in the previous bidding round, 15 percent of the proceeds were set aside for the government, with the remainder staying with the company.
Local Groups Prepare for Bidding
Meanwhile, renewed interest has emerged from local business groups, including Airblue, Lucky Cement, Arif Habib Group, and Fauji Fertiliser. Final bids are expected later this year as the government accelerates the process.
