Prime Minister Shehbaz Sharif has confirmed that bidding for Pakistan International Airlines (PIA) will take place on December 23. This is a renewed attempt to privatize the national airline after the previous bid failed. Earlier, a $36 million offer fell far short of the $305 million minimum price, amid concerns about debt, staff, and control issues.
This time, the government is offering full divestment and has removed sales tax on leased aircraft. Around 80% of PIA’s debt has been transferred to the government, making it more attractive for investors. Limited protection against legal and tax claims is also being provided.
PM Shehbaz emphasized that the process would be transparent and merit-based, with live coverage across Pakistan. He expressed confidence that privatization would restore PIA’s reputation and modernize the airline. He said PIA would soon return to its famous slogan: “Great People to Fly With.”
The premier also highlighted that reviving international flights will benefit overseas Pakistanis and boost tourism. “Modernizing the national airline is essential to grow tourism,” he added.
Several major local companies, including Airblue, Lucky Cement, Arif Habib Group, and Fauji Fertiliser, have already shown interest. PIA has also resumed flights to the UK and Europe after years-long bans due to regulatory issues.
Privatization Minister Muhammad Ali told Reuters that the government expects to raise Rs86 billion from this sale. During the previous attempt, only 15% of the proceeds went to the government, with the rest staying in the airline.
The Privatisation Division is negotiating with four pre-qualified consortia on commercial terms, share purchase agreements, and shareholder arrangements. The federal cabinet is expected to approve the reserve price before final bidding.
With this effort, Pakistan aims to modernize PIA and meet conditions under the $7 billion IMF bailout program, making the airline competitive both locally and internationally.
