PIA sell-off matter sent to cabinet panel
View of the Pakistan International Airlines (PIA) passenger plane, taken through a glass panel, at Islamabad International Airport, Pakistan on October 3, 2023. PHOTO: REUTERS
The Privatization Commission Board on Wednesday referred the matter of the privatisation of the Pakistan International Airlines (PIA) to the relevant cabinet committee and decided to improve the future offer process.
The PC Board met with Privatisation Minister Aleem Khan in the chair. The meeting discussed various issues related to the privatisation of various state institutions and gave approval to the certain recommendations.
On the occasion, Aleem Khan said that the privatisation process would be carried out in accordance with the laws and regulations and keeping the country's best interest. He directed that the future offer process should be improved for the privatisation of institutions, including the PIA.
"The final decision on the privatisation of PIA and other institutions will be taken by the Cabinet Committee," Khan told the board. "We are bound by our oath that we will do whatever is necessary for the betterment of the country and the nation."
On November 1, the government opened the bids but the much-anticipated privatisation of PIA stalled as the sole bid was around Rs75 billion lower than the government's expectations. The Blue World City consortium submitted its bid of Rs10 billion against the minimum price of Rs85.03bn, fixed by the Privatisation Commission.
The government had pre-qualified six groups in June, but only the real estate development company participated in the final bidding process. Since then, at least
two provincial governments have shown interest in taking over the airline's control.
PIA, a public limited company and national flag carrier, is largely government-owned, with the government holding about 96pc of its issued capital. As a full-service airline, PIA operates in various business segments, including passenger services, ground handling, flight training, cargo, engineering and in-flight catering.
The board also considered the privatisation of other projects. Khan directed that the privatisation of other government institutions should be carried forward without any delay. "There is a need to learn from the privatisation process of PIA,"
he added.