Pakistan's Struggle to Privatize PIA Amidst EU Ban

Pakistan's privatisation commission is addressing concerns from bidders regarding the EU Aviation Safety Agency's ban on Pakistan International Airlines (PIA). The privatisation process is vital for unlocking IMF funding. The ban, stemming from safety concerns and pilot licencing scandals, costs PIA nearly $144 million annually.

Pakistan's privatisation commission is addressing concerns voiced by those qualified to bid for the country's national airline about a European Union Aviation Safety Agency (EASA) ban on the carrier, an official said on Wednesday. The privatisation of the loss-making state-owned enterprises has long been on the International Monetary Fund's list of recommendations for Pakistan, which is seeking to strike a deal with the fund for a longer term bailout this month.

The privatisation commission pre-qualified six consortiums for bidding in June and expects to conclude the privatisation process of Pakistan International Airlines by next month. Usman Bajwa, secretary of the commission, told a briefing the body was addressing concerns voiced by those pre-qualified by the government to bid for a stake ranging from 51% to 100%.

Previous governments avoided disposing of the flag carrier as a potentially highly unpopular move, but the country needs to unlock further funding from the IMF. EASA banned the PIA from its most lucrative routes in Europe and Britain after a PIA plane crash in Karachi in 2020 killed nearly 100, followed by a scandal over pilot licences.

The ban continues, costing the airline annual revenue of nearly 40 billion rupees ($143.73 million), the government has told parliament. ($1 = 278.3000 Pakistani rupees)

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