Struggling Bid to Privatize Pakistan's National Airline

Pakistan's attempt to privatize its national airline, PIA, saw a single bid offering just Rs 10 billion for a 60% stake, far below the Rs 85 billion minimum set by the government. The bid process highlighted challenges in offloading the debt-ridden carrier and reforming state-owned enterprises.

Pakistan's national flag-carrier, PIA, faced a setback in its privatization efforts as the sole bidder fell significantly short of the government's valuation. The lone bid of Rs 10 billion for a 60% stake was made by Blue World City, a real estate development firm.

This privatization move, part of a broader agreement with the International Monetary Fund (IMF), aims to offload the loss-making state-owned enterprise. Despite pre-qualifying six potential buyers, only Blue World City participated in the final auction.

PIA, grappling with significant debt and operational losses, poses a tough challenge for potential buyers. The airline's depreciating assets and workforce issues contribute to the complexities, making substantial investment necessary for a turnaround.

(With inputs from agencies.)