[🇵🇰] Govt to auction PIA on October 1, amid debt crisis

[Ghazi52]

Govt to auction PIA on October 1, amid debt crisis​

Privatization Commission to adjust criteria for potential bidders to ensure a smoother auction process

News
September 21, 2024

The Privatisation Commission Board of Pakistan announced on Friday that the auction for Pakistan International Airlines (PIA) is set for October 1. This decision follows a meeting focused on assessing the ongoing privatisation process of the country’s national air carrier.

In its statement, the commission indicated that adjustments to the criteria for potential bidders would be made to facilitate a smoother auction process.

The board also noted that six bidders have been pre-qualified for the sale, including Fly Jinnah, a consortium led by YB Holdings, Air Blue Limited, a consortium led by Pak Ethanol, Arif Habib Corporation, and Blue World City.

PIA has been struggling under a massive debt burden of approximately Rs800 billion ($2.9 billion). The government has provided multiple bailout packages in recent years to help cover operational costs.

Initially, the aim was to complete the privatisation by August 14 but the timeline was pushed back due to bidders requesting updated audited accounts, aircraft lease agreements, and information regarding the airline’s suspended flights to Europe, which have been grounded for nearly four years.

This privatisation effort is aligned with recommendations from the International Monetary Fund (IMF), which has urged the government to sell off all loss-making state-owned enterprises to stabilise the economy.

Additionally, officials have been in discussions regarding the restoration of PIA flights to Europe. Deputy Prime Minister Ishaq Dar highlighted this issue as a "major priority" during a recent five-day visit to London.

The suspension of PIA flights followed a tragic 2020 plane crash in Karachi that claimed 97 lives, exacerbated by concerns over pilot licensing, which led to a ban imposed by the European Union Aviation Safety Agency.