PIA privatisation to be completed in three months: Aleem Khan
Surprisingly, the report mentions that the government privatised seven loss-making SOEs in January 2025. While the case of the privatisation of PIA is no mystery to anyone, it is clear that the current government has not completed any privatisation transaction. photo: file
Privatisation Minister Abdul Aleem Khan, announced on Thursday that the privatisation of the loss-making national carrier, Pakistan International Airlines (PIA), would be completed within three months.
“Federal Minister further mentioned that to make PIA’s privatization more attractive, a new roadmap is being provided and it is expected that all stages of this privatization process will be completed within the next three months,” Khan’s office said in a statement.
The minister stated that with the introduction of PIA flights to Europe, the privatisation process has become more appealing to investors.
Khan expressed confidence that there would be stronger interest from potential investors this time around. "The national airline is poised to become profitable again due to recent reforms," the statement added.
In the last bidding process for PIA's privatisation held in October 2024, only one bid was received, $36 million for a 60 per cent stake, well below the government’s minimum price of Rs85 billion.
Although six groups were pre-qualified for the bidding, the sole participant was Blue World City, a real estate development firm.
Potential bidders have raised concerns regarding policy continuity, honoring contracts, inconsistent government communication, unattractive terms, taxes on the sector, and PIA's legacy issues.
The airline’s cumulative losses are estimated to be close to $3 billion, while its total asset valuation stands at approximately $572 million.
Khan also revealed that PIA's flights to the UK would commence in three months, further boosting the airline's prospects. PIA resumed operations in Europe last year after the European Union Aviation Safety Agency (EASA) lifted its 2020 ban on the airline.
The ban had been imposed over concerns about the safety of pilots’ licenses and the ability of Pakistan's Civil Aviation Authority (PCAA) to meet international aviation standards.
Following a deadly plane crash in 2020 that killed 97 people, both EASA and UK authorities suspended PIA’s operational permissions.
“The privatization minister emphasized that there is an expectation of better expressions of interest from investors this time around as the introduction of PIA flights to Europe has made the privatization environment even more lucrative and favorable,” the statement said. “Due to recent measures, the national airline is ready to become profitable again.”