Govt invites bids for majority stake in PIA

ISLAMABAD: The federal government has officially invited expressions of interest (EOIs) from potential investors for the privatisation of Pakistan International Airlines (PIA), marking a major development in its bid to offload a controlling stake in the national flag carrier.

According to the Privatisation Commission, the decision has been made to sell between 51 percent and 100 percent of PIA shares, along with management control, to the prospective buyer. Interested parties have until June 3, 2025 to submit their EOIs.

As part of the process, the government has aAnnounced a number of incentives for investors. These include relief from 18% general sales tax (GST) on the purchase or lease of new aircraft. Additionally, protection and coverage will be provided in certain tax and legal cases, the commission stated. The move also involves the transfer of specific liabilities listed on PIA’s balance sheet, aimed at making the offer more attractive to potential buyers.

The privatisation push comes on the heels of PIA posting its first annual profit in over 20 years, a milestone that has added momentum to the government’s plans. Last week, the government stated it would issue the call for EOIs, following approval from the Privatisation Commission Board.

This marks the second attempt in recent years to privatise PIA. The previous effort last year failed, with only one bid received, and that too, far below the government’s minimum expectation of $300 million.