New proposals to sell 51-100% of PIA shares will be solicited next week.
Stricter requirements for the privatisation of Pakistan International Airlines (PIA) have been accepted by the Privatisation Commission Board, which has also agreed to call for new expressions of interest (EOIs) for the sale of 51 percent to 100 percent of the national flag carrier next week.
The Prime Minister’s Adviser on Privatisation, Muhammad Ali, presided over a board meeting where the decision was made. Sources indicate that as part of the updated schedule for PIA’s privatisation, EOIs will probably be invited on Wednesday or Thursday of next week.
More stringent pre-qualification standards
The pre-qualification requirements for prospective bidders have been updated by the board. In contrast to the former criterion of Rs200 billion in annual sales, the new requirements require the potential investor or company to demonstrate multi-year revenue of at least three years. Additionally, in order to guarantee that competent operators run the airline, expertise in the aviation industry has been made necessary.
The process has been “further tightened,” according to Privatisation Commission officials, to guarantee openness and legitimacy in the bidding process. Before the actual bidding process starts, the federal cabinet will be asked to provide its final assent to the privatisation plan.
Updated privatisation timeline
PIA’s privatisation has already seen several setbacks. The International Monetary Fund (IMF) was initially given the government’s word that the privatisation would be finished by July 2025. The Privatisation Commission now intends to wrap up the procedure by December 2025, though.
The next stage of the privatisation process will formally begin next week with the publication of a fresh ad for EOIs.
Tomorrow, the board will meet again to continue discussing the issue.
