Pakistan’s Cabinet Committee on Privatization (CCoP) on Tuesday approved a fast-tracked plan to sell 51-100 percent stake in the Pakistan International Airlines Corp. (PIACL), including management control, in its second attempt to offload the struggling carrier.
Chaired by Deputy Prime Minister Ishaq Dar, the meeting underscored the government’s commitment to proceeding with the divestment to unlock the national carrier’s full potential and ease its strain on public finances.
The PIACL has long been a financial drag on the treasury, with mounting liabilities and operational inefficiencies. The latest plan hopes to attract both local and foreign investors, with officials signaling a preference for strategic buyers capable of revamping the airline’s operations.
The government had attempted to privatize the PIA last year as well, offering a 60 percent stake, but failed to attract the minimum purchase price. During that attempt, most of the six shortlisted parties were unwilling to partner with the government and had sought complete ownership, exemption of sales tax on new or leased aircraft, and clearance of negative equity of Rs. 45 billion on the airline’s balance sheet.
In the second attempt, the government has expressed willingness to offload up to 100 percent shares and secured approval from the International Monetary Fund (IMF) for the removal of GST and clearing of the negative equity. Another factor in the PIA’s favor this year is the restoration of European routes that were blocked over former minister Ghulam Sarwar Khan’s allegations of a “majority” of pilots possessing fake licenses. This claim was later debunked.