Privatization board rejects sole bid for PIA

ISLAMABAD: The Privatization Commission Board has dismissed a sole bid of Rs10 billion for 60 percent of Pakistan International Airlines (PIA), emphasizing the need to refine terms to attract investors while minimizing the airline’s liabilities, but it seems the runway to privatization is a long one. PIA is currently saddled with approximately Rs200 billion in liabilities.

An official of the Privatization Commission told The News on Wednesday that in addition to private parties, the government is now considering alternative approaches, including potential government-to-government arrangements, to advance the long-awaited divestment of the national flag carrier.

Rumors suggest the Pakistan may offer PIA to Qatar, but an official did not confirm the news, stating that no such discussions are currently underway, though it could be considered as an option.

The commission is set to restart the privatization process for airliner from scratch, introducing new terms to attract more competitive offers, following the rejection of a sole bid of Rs10 billion.

The rejected bid from Blue World City Consortium, received during the October 31 bidding round, fell well short of the government’s minimum target of Rs85.03 billion ($304 million).

Following this, the Privatization Commission board that met here with the privatization minister Abdul Aleem Khan in the chair on Tuesday, referred the matter to the Cabinet Committee on Privatization (CCoP), led by Deputy Prime Minister Ishaq Dar, for further deliberation before a final decision is taken by the Federal Cabinet.

“If the federal cabinet also rejects the bid, authorities will relaunch the privatization process with revised terms and fresh Letters of Intent (LoIs) aimed at drawing higher offers,” official said.