Pakistan to Complete PIA Privatization by October 1, Official Confirms

A senior Pakistani official announced the completion of the Pakistan International Airlines (PIA) privatization by October 1, following delays. The PIA has faced significant financial losses, necessitating its prioritization for privatization under an IMF bailout deal. Six companies are prepared to bid for the airline.

A senior Pakistani official has confirmed that the privatisation of Pakistan International Airlines (PIA) will be completed by October 1, following previously missed deadlines.

Usman Akhtar Bajwa, Secretary of the Privatisation Commission, informed the Senate Standing Committee on Privatisation that the timeline for the national flag carrier's offloading has been strictly set.

The decision is a part of the government's agreement with the International Monetary Fund (IMF) for a USD 3 billion bailout to overhaul state-owned enterprises. PIA, suffering persistent financial losses amounting to billions of rupees annually, has been prioritised for privatisation.

During the Senate Standing Committee meeting, Bajwa assured that the privatisation process deadline would not exceed October 1. He revealed that six companies have been shortlisted for the bidding process.

To ensure smooth functioning, the buyer will need to invest Pakistani Rs 425 billion immediately, despite the airline's deficit reaching Pakistani Rs 500 billion.

The federal government previously extended the due diligence period for PIA's privatisation by two months. Initial plans indicated the process would finalise by June or early July, but this timeline was unachievable.

Once a leading airline, PIA became unprofitable in 2011, necessitating state subsidies to address its rising debts.

Previous attempts to privatise or overhaul the airline failed due to political hurdles.

(With inputs from agencies.)