Struggling to Sell: PIA's Privatization Bid Faces Challenges

The privatization of Pakistan International Airlines (PIA) faces challenges as only one bid was submitted. Blue World City offered 10 billion rupees for a 60% stake, below the government's minimum price of 85 billion. Concerns about government policy continuity and economic conditions are hindering the process.

The privatization effort of Pakistan International Airlines (PIA) has encountered a setback, with only one bid submitted during the final bidding round. The offer came from Blue World City, a real-estate development firm, proposing 10 billion rupees for a 60% stake. This figure falls significantly short of the government's set minimum price of 85 billion rupees.

The Pakistani government is attempting to offload a 51-100% stake in the struggling airline as part of a broader initiative to reform state-owned enterprises under an International Monetary Fund program. However, only Blue World City pursued the opportunity, and its chairman, Saad Nazir, insisted their offer stood firm. He expressed skepticism about the government's financial evaluation, citing several organizational inefficiencies.

Amidst concerns over the continuity of government policies and the handling of agreements under a new leadership, industry experts suggest the need for the government to reconsider its strategy. The coalition government's prior actions, including revisiting power contracts, contribute to these uncertainties, impacting investor confidence and the economic landscape.

(With inputs from agencies.)