The Privatisation Commission of Pakistan has selected six potential buyers for PIA, which is set to be sold off. The bidders include Fly Jinnah, a consortium led by YB Holdings, Air Blue Limited, another consortium led by Pak Ethanol, Arif Habib Corporation, and Blue World City.
The auction is scheduled for October 1, after the commission reviews the privatisation process and makes any necessary changes to the bidding criteria.
PIA is currently facing significant financial difficulties, carrying a debt burden of around Rs800 billion (equivalent to $2.9 billion). To keep the airline afloat, the government has provided numerous bailout packages over the years.
However, selling PIA is now part of a larger effort to follow the International Monetary Fund’s (IMF) recommendations. The IMF has advised Pakistan to privatize loss-making state-owned enterprises as a way to stabilize the country’s struggling economy.
Additionally, government officials are in talks to restore PIA’s flight services to Europe, which have been suspended since 2020. This suspension occurred after a tragic plane crash in Karachi, which raised serious concerns about pilot licensing, prompting the European Union Aviation Safety Agency (EASA) to ban PIA flights.
Recently, Pakistan’s Deputy Prime Minister, Ishaq Dar, emphasized the importance of resolving these flight suspension issues during his visit to London. Reinstating PIA’s services to Europe would be a key step in helping the airline regain some of its international business, potentially making it more attractive to bidders during the privatisation process.
