K-P seeks control of PIA, offers more than Rs10b for acquisition

Khyber Pakhtunkhwa (KP) has expressed its formal intent to outbid competitors in the sale of Pakistan International Airlines (PIA), urging that the national carrier remain under government control to protect its symbolic value.

The proposal, conveyed in a letter from K-P authorities to federal officials on Friday, surfaced publicly on Saturday.

K-P’s interest comes just a day after Pakistan’s federal government began PIA’s privatisation process, receiving a single bid of Rs10 billion (around $36 million) from Blue World City, a real estate developer.

This bid fell significantly short of the government’s minimum target of Rs85 billion ($305 million), triggering criticism from PIA unions and independent analysts alike, who called the offer an “embarrassment.”

Critics argue that, instead of selling, the government should invest in expanding PIA’s fleet to enhance its operational capabilities.

The letter from KP’s Board of Investment and Trade conveyed the provincial government’s stance. “On behalf of the Chief Minister and the people of KP, we would like to express our earnest interest in participating in the bidding process for the sale of Pakistan International Airlines (PIA),” it read, further noting the province’s readiness to compete with a bid surpassing Blue World City’s offer.

The letter, addressed to Pakistan’s Privatisation Minister Abdul Aleem Khan, emphasized PIA’s symbolic importance as “a critical asset that symbolises our national identity and pride.”

The Chief Minister, Ali Amin Gandapur, reportedly directed provincial authorities to pursue the acquisition actively, asserting the airline should remain under public control “rather than transferring to any private or foreign-backed entity.”

With the aim to maintain “a strong and competitive position,” KP leaders said they were prepared to offer an amount that would exceed Blue World City’s bid of Rs10 billion.

The letter also requested a prompt meeting with federal officials to present KP’s comprehensive proposal and vision for PIA.

However, the province’s offer raises potential conflicts with the terms of the privatisation agreement under a $7 billion, 37-month bailout with the International Monetary Fund (IMF), initiated in September.

The IMF-backed plan, which includes divesting over 51 percent of PIA’s shares, was designed to alleviate the financial strain posed by state-owned enterprises.