The federal government has decided to invite fresh bids for the privatisation of Pakistan International Airlines (PIA) following concerns about low offers received during the initial bidding process.
Federal Minister for Privatisation Abdul Aleem Khan disclosed the plan during a Senate Standing Committee meeting, chaired by Senator Talal Chaudhry. Khan highlighted the government’s commitment to reviving PIA, with Prime Minister Shahbaz Sharif prioritising its privatisation.
PIA faces cumulative losses of Rs830 billion, with Rs623 billion transferred to a holding company, leaving Rs200 billion in liabilities. Despite these challenges, Khan emphasized the airline’s potential, citing its profitable routes and valuable assets.
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Drawing comparisons with Air India’s privatisation struggles, Khan stressed the need for bold reforms and strategic decisions to attract credible investors. Previous obstacles included demands for Rs26 billion in tax waivers and settling Rs10 billion in financing.
The Privatisation Commission Secretary assured that groundwork from the first privatisation attempt would streamline the re-bidding process. Criticism was also directed at the Federal Board of Revenue for maintaining GST on new aircraft procurement, which Khan argued hinders competitiveness.
While acknowledging the challenges, Khan reiterated the importance of PIA’s privatisation to ensure its revival and long-term sustainability.