Pakistan: PIA can be sold to a foreign government

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According to sources cited by ARY News on Wednesday, the Privatization Commission allegedly turned down a Rs10 billion proposal from the Blue World Consortium, meaning that Pakistan International Airlines (PIA) may be sold to a foreign government.

Pakistan is looking to sell between 51 and 100 percent of the faltering airline as part of a USD 7 billion International Monetary Fund (IMF) scheme to generate money and reorganize state-owned businesses. However, according to ARY News, the Blue World Consortium’s proposal of Rs 10 billion was rejected by the Privatization Commission.

The PIA is now probably going to be sold to a foreign government in a government-to-government (G2G) deal, with Qatar or Abu Dhabi being possible purchasers, according to ARY News, which cited sources. According to reports, the Strategic Investment Facilitation Council (SIFC) intends to request international investors’ expressions of interest (EOIs) by November 30.

According to sources cited by ARY News, a number of pre-established criteria and conditions are anticipated to assist negotiations with Qatar or Abu Dhabi, perhaps speeding up the process.

Only one proposal of Rs 10 billion (USD 36 million) for a 60% share in the airline was received during the October PIA privatization auction process. Only the real estate company Blue World City made a proposal, which was far less than the government’s minimum asking price of Rs 85 billion, even though six firms had been pre-qualified in June.

The Privatization Commission Board turned down Blue World City Consortium’s Rs10 billion offer to sell 60% of Pakistan International Airlines Company Limited (PIACL) on October 31, 2024, according to a report published by Pakistan Media on Thursday.

At a high-level meeting of the Privatization Commission Board, which was led by Federal Minister for Privatization, Board of Investment, and Communications Abdul Aleem Khan, a number of topics, including the privatization of PIA, were addressed and suggestions were accepted.

While the Privatization Commission Board meeting was updated on numerous privatization concerns and expressed satisfaction with the progress made so far, it was determined at this meeting to send the privatization of PIA to the Cabinet Committee.