Minister for Investment and Privatisation Abdul Aleem Khan announced on Thursday that the government aims to complete the privatisation of Pakistan International Airlines (PIA) within the next three months.
“All concerns of interested parties in the airline’s privatisation process have been properly addressed,” Khan stated, adding that the government has made adjustments to meet investor preferences.
New Roadmap for PIA’s Privatisation
To enhance the airline’s appeal to potential buyers, the government has introduced a fresh roadmap for the process. “It is expected that all stages of PIA’s privatisation will be completed within three months,” Khan noted.
He expressed optimism about greater investor interest this time, particularly due to the airline’s return to European routes, which has made privatisation more attractive. The government also plans to resume flights to the UK within the next three months, with routes to the US and the Far East to follow.
Reviving PIA’s Profitability
Khan assured that ongoing measures would restore PIA’s credibility and profitability. “There is no doubt that PIA has the potential to become a profitable airline once again,” he said.
The government is set to invite Expressions of Interest (EoIs) for PIA’s privatisation in March, with plans to transfer ownership to the private sector before the fiscal year ends, The News reported, citing an official from the privatisation commission.
The previous attempt to privatise PIA stalled due to investor concerns, but key obstacles have now been resolved. Additionally, the International Monetary Fund (IMF) has granted a waiver on the 18% general sales tax for new aircraft purchases and allowed the government to absorb PIA’s Rs45 billion negative equity, a report published in February revealed.
