The Khyber-Pakhtunkhwa government on Friday wrote to Privatization Minister Aleem Khan expressing an “earnest interest” in participating in the bidding process for the Pakistan International Airlines (PIA), whose privatization failed to take off this week after it attracted just one bid of Rs. 10 billion for a 60% stake.
The government had set a minimum price for the sale of 60% ownership of PIA at Rs. 85 billion and pre-qualified six groups for the bidding process. Prior to the final date of submission for bids, however, five groups withdrew their offers, leaving just one real estate company that offered a bid significantly lower than expectations.
In its letter to the privatization minister, the Khyber-Pakhtunkhwa Board of Investment and Trade said is was acting on behalf of the chief minister and the people of the province. “This letter serves as our formal intent to position the government of KP as a competitive bidder in this strategic acquisition,” it said.
Describing PIA as a “critical” national asset, the letter said the chief minister had directed the Board to actively pursue its acquisition to ensure it remains within the ambit of the Government of Pakistan rather than with a private or foreign-backed entity. “In line with this commitment, we are prepared to offer a bid that will surpass the current highest offer of Rs. 10 billion,” it added.
“We respectfully request that the Government of KPK’s proposal be considered as a viable option to retain the national flag carrier within a provincial government structure, preserving PIA’s legacy and aligning with the public’s interest in maintaining national assets,” it said. It also sought an immediate opportunity to meet the privatization minister’s team and present its proposal for acquisition of the PIA.
“We look forward to your positive response and the opportunity to serve Pakistan in this significant undertaking,” the letter concluded.