Pakistan Sets Stage for PIA Sale Amidst Profit Turnaround

The Pakistani government is taking steps to sell 51-100% of Pakistan International Airlines. This move comes after recent profit reports and aims to meet International Monetary Fund conditions. Prior privatization efforts failed due to low bids and legacy debts, which have now been addressed.

In a pivotal move to reform its struggling national carrier, the Pakistani government is set to invite expressions of interest for the sale of Pakistan International Airlines (PIA) next week, according to the country's privatisation ministry. This decision follows PIA's first annual profit report in over two decades, a vital step in attracting potential investors.

With the nation targeting to divest between 51-100% of the airline's stakes, this initiative aims to generate significant funds while aligning with a $7 billion International Monetary Fund program, focused on streamlining state-owned enterprises. A previous attempt to privatize PIA ended in disappointment, with only one bid falling short of the $300 million mark, prompting new efforts for better bidder engagement.

Key issues raised by bidders about legacy debts that thwarted past privatization have now been resolved, stated Muhammad Ali, the government's advisor on privatisation. The privatisation commission board has approved new pre-qualification criteria for interested bidders, signaling a fresh start for the national carrier's strategic sale.

(With inputs from agencies.)