The government has decided to push back the financial bidding for the privatization of Pakistan International Airlines (PIA) by a month, moving the deadline from October 1 to October 31, 2024. This move comes after key issues remained unresolved, and bidders showed less interest than expected.
Sources suggest that the delay is tied to a few major problems, including pending court cases, concerns about the aging fleet of aircraft, and other civil aviation-related matters.
Earlier this week, Usman Bajwa, Secretary of the Privatization Commission, told the National Assembly’s Standing Committee on Privatization that six pre-selected bidders had been provided the final bidding documents. Initially, the financial bidding was set for October 1.
There were also some claims floating around that Turkish Airlines was interested in buying PIA. However, Turkish Airlines immediately denied any such interest, asking Bloomberg to clarify their stance.
Efforts to get an official comment from Secretary Jawad Paul, who heads the Privatization Division, didn’t yield any results.
Back in June, six consortiums were shortlisted to bid for a 60% stake in PIA. These bidders include Fly Jinnah Limited, Air Blue Limited, Arif Habib Corporation Limited, as well as consortiums led by Y.B. Holdings Private Limited, Pak Ethanol, and Blue World City.
The extra month could give the government time to smooth out these issues and see if any more interest can be generated before the new deadline. All eyes are now on how things unfold in the coming weeks.
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