The government reopens the PIA bidding and provides a 100 percent ownership.

With the issuance of a notice seeking expressions of interest for the sale of 51 to 100 percent of the national airline, the federal government has formally restarted the privatization process of Pakistan International Airlines (PIA).

The transfer of management control of PIA is another aspect of the process that has encountered numerous obstacles in recent years.

The long-awaited privatization program has entered a new step with the Privatization Commission announcing that expressions of interest must be submitted by June 3, 2025. The Commission claims that PIA’s core and non-core operations have now been divided, and that the airline’s assets and liabilities have been transferred to PIA Holding Company Limited.

The Privatization Commission has said that sales tax exemptions will be provided for the purchase and leasing of new aircraft in addition to financial assistance for PIA in an effort to increase the sale’s appeal to possible investors.

The government is making this move as part of its efforts to revive the airline, which has been losing money steadily for a number of years.

Following a string of setbacks that have hampered the process, the decision was made to proceed with the privatization. Bids for the airline had previously been submitted to the government, but they were turned down since they didn’t reach the anticipated financial goals. The government is requesting Rs 85 billion for the privatization of 60% of PIA, and bids were opened in October 2024. But the single bid that was accepted was for a mere Rs 10 billion from a real estate marketing firm, which was significantly less than what the government had anticipated.

A somewhat larger bid was then made by the Al Nhang Group, a Pakistani organization with headquarters in Dubai. The firm wanted to buy PIA for about Rs 125 billion, which would include the airline’s liabilities of Rs 250 billion. Additionally, the Al Nhang Group promised that PIA workers would not be laid off and that their pay would gradually rise by 30 to 100 percent.

The privatization procedure was nonetheless controversial despite the higher bid. Former Federal Minister for Privatization Fawad Hassan Fawad publically chastised the administration on December 19, 2024, saying it was undermining the privatization initiative. According to Fawad, the current government had blocked the sale’s progress even though all the necessary preparations had been finished. He also questioned the government’s privatization strategy, pointing out that the head of the Privatization Commission simultaneously serves as the nation’s foreign minister, a role he claimed goes against the objectives of privatization.

The debate surrounding the privatization of PIA has also been shaped by broader political narratives. Fawad Hassan Fawad emphasized the need for a clear and consistent policy, urging the government to adopt a smaller, more efficient public sector. “The goal and storyline for privatization should be very clear,” he stated. Name a nation where the foreign minister serves as the chairman of the privatization committee. Big government is something that the current prime minister supports. A administration that supports minimal government is what we need.

The government’s renewed focus on privatization comes at a time when PIA’s financial struggles remain a pressing issue. The airline, once a symbol of national pride, has faced years of mismanagement and mounting losses, leading to its current dire financial situation. Despite these challenges, the government appears determined to move forward