Govt extends PIA privatisation deadline by two weeks

The governemnt has extended the deadline for submitting Expressions of Interest (EOI) in purchasing Pakistan International Airlines (PIA) to June 19, the Ministry of Privatisation announced on Tuesday.

The extension follows a need to accommodate the Eidul Adha holiday and the recent political and military tensions, including the Pakistan-India conflict, an official said.

The move comes as Pakistan continues its efforts to privatise the debt-ridden national carrier to raise funds and streamline state-owned enterprises, as part of the country’s agreement with the International Monetary Fund (IMF) under a $7 billion programme.

The original deadline for the submission of EOI was June 3. The ministry confirmed that all other terms and conditions would remain unchanged.

Read more: Govt tightens PIA bidding terms

In a bid to tackle its financial crisis, Pakistan is looking to sell a 51 to 100 per cent stake in PIA. However, past attempts to privatise the carrier have faced challenges.

In the final bidding round last October, only one bid was submitted — a $36 million offer for a 60 per cent stake — far below the government’s minimum price of $303 million.

Bidders have cited concerns about policy continuity, inconsistent government communication, and unfavourable terms in the aviation sector as significant obstacles.

PIA’s privatisation has been under pressure for several years, with the airline's operations further impacted by a 2020 EU ban over safety concerns related to pilot licencing irregularities.

Despite these challenges, the government remains committed to privatising PIA, along with other loss-making public entities, to reduce the financial burden on the national exchequer.