Prime Minister Shehbaz Sharif announced on Wednesday that the bidding for Pakistan International Airlines (PIA) will take place on December 23, marking a major step in the government’s push to privatise the national carrier. The prime minister made the announcement during a meeting with business leaders and company representatives involved in the process.
PIA is the first major state-owned enterprise to be put up for divestment under the new privatisation framework, a key requirement of Pakistan’s $7 billion IMF bailout. A previous attempt to privatise the airline had failed when a private real estate firm’s $36 million offer fell far below the government’s $305 million floor price. Concerns surrounding PIA’s heavy debt, staffing levels, and limited management control also discouraged investors.
This time, the government is offering full divestment, has removed sales tax on leased aircraft, and is providing certain protections from legal and tax claims. In addition, around 80% of PIA’s debt has been shifted to the government to make the deal more attractive.
During the meeting, PM Shehbaz said transparency and merit will guide the entire privatisation process, adding that the bidding will be broadcast live across the country. He said the process is moving smoothly and is aimed at restoring PIA’s reputation and upgrading the airline to meet modern aviation standards. The prime minister said a revived PIA will once again reflect its historic slogan, “Great People to Fly With.”
He noted that restoring PIA’s international flights would greatly benefit overseas Pakistanis and would play a key role in boosting the tourism sector. “To strengthen tourism, it is essential to bring the national airline in line with contemporary demands,” he said.
The prime minister expressed confidence that whichever bidder takes control will work to rebuild PIA’s image and steer it toward long-term progress.
Participants of the meeting praised the government’s transparent and professional approach to privatisation.
The government aims to raise Rs86 billion from privatisation proceeds this year, Privatisation Minister Muhammad Ali said last month. Several major business groups, including Airblue, Lucky Cement, Arif Habib Group, and Fauji Fertiliser, have shown interest in the process, with final bids expected later this year.
PIA recently resumed flights to the United Kingdom after a ban linked to a pilot licence scandal was lifted in July. Its European operations resumed in January following a four-year suspension.
A senior official from the Privatisation Division recently told a parliamentary committee that four pre-qualified consortia are now negotiating commercial terms. Talks on share purchase agreements and shareholder arrangements have been ongoing, and the federal cabinet will approve the reserve price before final bidding takes place.
The December 23 bidding round is expected to be a decisive moment for PIA’s future as the government attempts to revive the airline through private-sector management.
