PIA privatisation process begins with sole bidder

PIA's privatisation bidding opens today, with a real estate developer as the sole bidder seeking 60% shares.

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The much-anticipated bidding process for the privatisation of Pakistan International Airlines (PIA) officially commenced today, with real estate developer emerging as the only participant.

Saad Nazir, chairman of the real estate submitted their bid during a ceremony held at a hotel in Islamabad.

The bidding comes after the government received approval from the Privatisation Commission Board regarding the reserve price.

The media will witness the bid opening at 6:30 PM today, with the expectation that if the bid exceeds the reserve price, it will be deemed successful and forwarded to the federal cabinet for final approval.

PIA's financial landscape reveals assets worth approximately PKR 152 billion, including aircraft and operational routes.

The airline has around 7,100 employees, with over 2,400 working on a daily wage basis. In an effort to stabilize the workforce post-privatization, the real estate agency plans to retain employees for 18 months and may offer re-employment to around 70% thereafter, according to sources.

CEO of the group's aviation wing, Maitham Raza, expressed optimism about the bid, stating their commitment to invest $300 million over five years and expand PIA's fleet from 45 to potentially 50 aircraft. He emphasized that the privatization will foster competition within the aviation industry.

As the bidding process unfolds, the government hopes this move will revitalize PIA and restore its status as a leading airline in the region.

The future of the national carrier now hinges on the outcome of today’s proceedings.

Cash-strapped Pakistan is looking to offload a 51-100% stake in debt-ridden PIA PIAHa.PSX to raise funds and reform bleeding state-owned enterprises as envisaged under a $7 billion International Monetary Fund programme.