Islamabad — The federal government on Tuesday moved ahead with a critical step in its privatisation agenda as it prepared to open sealed bids for the sale of a majority stake in Pakistan International Airlines (PIA), a state-owned entity that has remained a significant drain on national finances for years.
The bidding process marks the second major attempt to privatise PIA, with the government aiming to offload up to 75 per cent ownership of the national flag carrier to a private consortium. Officials say the sale is part of broader economic reforms designed to reduce losses from state-owned enterprises and stabilise public finances.
According to sources, three consortiums remain in the final race, including a group led by AirBlue, another backed by Lucky Cement, and a third associated with Arif Habib Group. Earlier, Fauji Fertiliser Company Limited withdrew from direct bidding, though it may still join the process at a later stage through partnership arrangements.
The sealed bids were scheduled to be submitted within a defined time window earlier in the day, after which they would be reviewed by the Privatisation Commission Board and the Cabinet Committee on Privatisation. The bids are to be opened in a public ceremony, underscoring the government’s commitment to transparency in one of the country’s most closely watched privatisation exercises.
Officials say the current attempt incorporates key structural changes following the failure of last year’s bid, which attracted only one offer that fell well below the government’s expectations. This time, PIA’s balance sheet has been partially cleaned up, several liabilities have been shifted away, and policy bottlenecks — including taxation issues related to aircraft acquisition — have been addressed to make the airline more attractive to investors.
Under the proposed framework, the successful bidder will be required to make an initial payment within a specified period, with remaining obligations spread over the following months. The government is also expected to retain a minority stake initially, while providing assurances related to employee job security during the transition phase.
Economic analysts view the process as a litmus test for Pakistan’s privatisation drive, noting that a successful sale could help revive the struggling airline, improve service standards, and reduce the long-standing financial burden on taxpayers. However, they caution that the real challenge will lie in effective post-privatisation management and regulatory oversight.
As the bidding unfolds, attention remains firmly fixed on whether this long-awaited move will finally place PIA on a sustainable commercial footing.
This story has been reported by PakTribune. All rights reserved.