Gerry’s Group, others among bidders for PIA

PM Sharif's stance reflects need to end taxpayer-funded subsidies for the struggling carrier

ISLAMABAD:

Around ten initial bidders, including the Arif Habib Group and Gerry's, have shown interest in purchasing a majority stake in the state-owned Pakistan International Airlines (PIA).

According to a Bloomberg report, privatization minister Abdul Aleem Khan gave a briefing where he stated that three private-sector airlines that operate on domestic routes have also submitted bids. However, he refrained from disclosing the specific names of these airlines.

This initiative aligns with Pakistan's commitment to achieve economic reforms in line with the bailout conditions put forward by the International Monetary Fund (IMF).

Prime Minister Shehbaz Sharif's stance reflects the need to end taxpayer-funded subsidies for the struggling carrier, highlighting the urgency for structural changes.

The participation of private-sector airlines entertains the possibility of consolidation within the carrier industry and the infusion of new capital and expertise into PIA.

Moreover, the choice not to saddle the buyer with the majority of PIA's debt enhances the deal's appeal, rendering it more attractive to potential investors.

By extending the deadline for the submission of bids, it allows room for interested parties to exercise due diligence and understand the significance of this transaction.

The result of this privatization initiative will likely have broad and significant implications for Pakistan's aviation sector and wider economic panorama.