The government of Pakistan has announced its decision to restart the privatization process of Pakistan International Airlines (PIA), with plans to invite expressions of interest (EOI) later this month. The Privatization Commission recently briefed members of the National Assembly’s Standing Committee on Privatization, highlighting that an EOI for PIA’s privatization will soon be issued. However, notable regional airlines, including Etihad and Qatar Airways, have shown no interest in acquiring the national carrier.
PIA’s negative equity has been resolved, and the airline has been granted a sales tax exemption to aid in the privatization process. PIA also owes PKR 26 billion to the Federal Board of Revenue (FBR) and PKR 10 billion to the Civil Aviation Authority. Despite this, the government has pledged to continue paying pensions to retired employees.
As part of the new privatization strategy, the IMF has allowed tax exemptions on new aircraft purchases, benefiting both PIA and other local airlines. This move aims to enhance competition in the region by easing the financial burden on airlines acquiring new aircraft. Following privatization, PIA will be expected to purchase between 15 and 20 new planes, with the total tax exemption amounting to around PKR 60-70 billion.
The government has also emphasized employee protection, with the Privatization Commission assuring no layoffs for at least five years. Although previous bidders had concerns over PIA’s PKR 45 billion outstanding liabilities, a Malaysian airline consortium has shown renewed interest in the bidding process. As the privatization process unfolds, stakeholders remain optimistic about the future of Pakistan’s national airline, especially with the potential for modernized fleets and competitive growth in the aviation sector.
, with plans to invite expressions of interest (EOI) later this month. The Privatization Commission recently briefed members of the National Assembly's Standing Committee on Privatization, highlighting that an EOI for PIA's privatization will soon be issued. However, notable regional airlines, including Etihad and Qatar Airways, have shown no interest in acquiring the national carrier.){kind=link}