ISLAMABAD (TDI): Pakistan’s government has finalized the conditions for the privatization of Pakistan International Airlines (PIA), proposing to sell 60% of its shares to shortlisted bidders.
However, government has rejected requests for additional tax breaks.
Bidding is set to begin on October 1, starting at a minimum price of Rs45 billion, which reflects the airline’s current negative equity and will be the responsibility of the new owner.
PIA Privatization
Privatization Commission Secretary Usman Bajwa said that the terms were shared with bidders last week, with expectations for approval.
He addressed the National Assembly Standing Committee on Privatization following a meeting with Deputy Prime Minister Ishaq Dar.
Read More: PIA Privatization Bid Fails To Attract Buyers
Farooq Sattar of MQM-Pakistan leads the standing committee.
If bidders agree to the final conditions, they must deposit earnest money, with the bidding process scheduled for the following Tuesday.
Bajwa emphasized that this marks a critical step toward selling the majority shares and management control of the loss-making airline.
Also Read More: Government Insisting To Protect PIA Jobs After Privatization
Initially, the government had offered between 51% to 100% of PIA’s stake but has now settled on a 60% sale. “We are in the final leg of PIA privatization,” he stated.
Bajwa also noted that if PIA resumes operations successfully, it could adversely affect the businesses of Etihad Airways, Qatar Airways, and Emirates.
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