The government has moved a step closer to privatizing Pakistan International Airlines (PIA). According to the Secretary of the Privatization Commission, the bidding process for PIA’s privatization set to take place on October 1. Today, the government is finalizing and signing the draft agreement with the potential buyers. The draft has already shared with investors, and bidders required to deposit their amounts by September 27.
Whoever buys PIA must invest 65 to 70 billion rupees immediately and expand the fleet from 18 to 45 planes within five years. The government ensured PIA employees’ rights and pensions protected, with strict action if the new owners don’t comply.
One major relief is that the government has taken responsibility for 600 billion rupees out of PIA’s massive 800 billion rupees debt. This means the airline will start fresh, free of the burden of debt. After the bidding, final approval will come from the federal cabinet.
The sale will see 60% of PIA’s shares sold off. This move also aims to resolve the European flight ban and ensure job security for employees for a longer period. Pre-qualified bidders have given until September 27 to submit their final bids.
The Privatization Commission Secretary, Usman Bajwa, briefed the National Assembly’s Standing Committee on Privatization. He mentioned that pre-bid meetings held in Karachi and other locations in June, July, August, and September to ensure a smooth process. The privatization will hand over a debt-free PIA, and the buyer must commit to expanding its fleet and investing billions to make the airline competitive again.
As the clock ticks towards the October 1 bidding date, all eyes are on this major step, which could reshape the future of PIA and possibly help turn the national flag carrier around.
. According to the Secretary of the Privatization Commission, the bidding process for PIA’s privatization is set to take place on October 1. Today, the government is finalizing and signing the draft agreement with the potential buyers. The draft has already been shared with investors, and bidders are required to deposit their amounts by September 27.){kind=link}