Pakistan International Airlines may be sold to a foreign government via a government-to-government deal. After the rejection of the consortium of Blue World’s bid. The Privatisation Commission rejected the Rs 10 billion bid made by the consortium for the purchase of 60% stakes in the airline.
To restructure state-owned enterprises and raise funds under a USD 7 billion IMF program. Pakistan is willing to sell a controlling stake in PIA. The government has now planned to offload a 51-100% stake with Qatar and Abu Dhabi emerging as possible buyers. Sources privy to the development told ARY News that the Strategic Investment Facilitation Council will invite expressions of interest from foreign investors by November 30.
Negotiations with Qatar or Abu Dhabi would be faster since they already have a set of terms and conditions, which could expedite the process. The last bidding round held in October attracted just one bid worth Rs 10 billion equivalent to USD 36 million. It fell way below the minimum asking price the government set at Rs 85 billion. Although the commission prequalified six groups, Blue World Consortium, a real estate firm, submitted the only bid.
Pakistani media on November 14 reported that the Privatisation Commission Board officially rejected the Rs 10 billion bid. In its chairmanship, Federal Minister for Privatization Abdul Aleem Khan, the board met to discuss the privatization of PIA. The commission decided to send it to the Cabinet Committee for further discussion. The board reviewed other privatisation issues and expressed satisfaction with the progress made so far.
Therefore, the sale of PIA has become one of the crucial issues for Pakistan. Within the more general plan of decreasing state-owned enterprise debt to meet the requirements of the IMF program. In this context, the government hopes that foreign investors will contribute to stabilizing PIA’s financial situation and improving its operational performance.
ANI
