Prime Minister Shehbaz Sharif on Wednesday announced the bidding process for the sale of the Pakistan International Airlines (PIA) will take place on Dec. 23 and be telecast live nationwide to ensure transparency.
During a meeting with the leading business figures and company representatives participating in the national carrier’s privatization, he emphasized that transparency and merit are the incumbent government’s foremost priorities.
The premier said the privatization process aimed to restore PIA’s lost identity and align the national airline with modern requirements. “God willing, PIA will soon once again live up to its tradition of being ‘Great People to Fly With’,” he said.
Sharif noted that the restoration of PIA’s global flight operations would benefit overseas Pakistanis, stressing that modernizing the airline was equally vital for Pakistan’s tourism sector. “To strengthen tourism, it is essential to bring the national airline in line with contemporary demands,” he said, expressing confidence that the winning buyer would “focus all energies on restoring PIA’s reputation and driving its progress.”
A statement issued by the Prime Minister’s Office said the participants had commended the government for adopting a professional and transparent mechanism for the airline’s privatization.
The long-pending privatization of PIA is a key condition of the International Monetary Fund (IMF)’s ongoing $7 billion Extended Fund Facility for Pakistan. A previous attempt last year collapsed when it failed to meet the minimum price. To overcome the previous deficiencies of the process, the government is now offering full divestment, scrapping the sales tax on leased aircraft, and is providing limited protection from legal and tax claims. Roughly 80% of the airline’s debt has also been transferred to the state.
Four groups—led by AirBlue, Lucky Cement, Arif Habib Group, and Fauji Fertilizer—have been pre-qualified for the final bidding.