Pakistan Seeks to Privatize PIA Amid Financial Reform Efforts

The Pakistani government aims to relaunch the sale of Pakistan International Airlines (PIA) following its first annual profit in over two decades. Efforts include offloading national carrier's legacy debt and revising sale criteria to meet International Monetary Fund program's objectives. Privatization is expected to conclude by year-end.

The Pakistani government is set to invite new expressions of interest for the privatization of Pakistan International Airlines (PIA) later this month, according to a government adviser. This move follows PIA reporting its first annual profit in over two decades.

Pakistan has long been attempting to divest a 51-100% stake in the financially troubled airline, as part of a broader strategy to fund reforms of cash-intensive state-owned enterprises, aligning with a $7 billion International Monetary Fund initiative. A previous privatization effort faltered with a lone offer that didn't meet the $300 million minimum. Legacy debt issues have since been addressed by shifting them to government accounts, making the offer more appealing for prospective buyers, stated Muhammad Ali, the government's privatization adviser.

Prime Minister Shehbaz Sharif announced that the government is revising its qualifications for potential buyers and expects to open bids by the last week of April 2025. They also intend to privatize power distribution companies and explore sales options for PIA-owned assets like the Roosevelt hotel in New York City, which could involve a joint venture to maximize revenue.

(With inputs from agencies.)