Prime Minister Shehbaz Sharif has officially announced that the PIA privatisation bidding process will take place on December 23, marking a crucial step in Pakistan’s renewed push to revive its struggling national carrier.
The announcement came during a high-profile meeting with business leaders and company representatives participating in the divestment effort — the first major sale under the government’s new state-owned enterprise policy framework. State-run media reported that the premier reassured attendees that the entire bidding will be broadcast live to the nation to ensure complete transparency.
Pakistan is pushing ahead with PIA’s full privatisation — a major requirement of the country’s $7 billion IMF bailout package. The previous attempt collapsed when the only submitted bid of $36 million fell far below the government’s $305 million floor price.
To attract stronger offers this time, Islamabad has removed sales tax on leased aircraft, offered protection from legal and tax liabilities, and shifted nearly 80% of PIA’s debt onto the government.
PM Shehbaz said the process was moving “smoothly” and expressed hope that PIA would soon regain its lost glory. “God willing, PIA will once again live up to its tradition of being Great People to Fly With,” he noted.
The prime minister added that reviving global flight operations is essential not only for overseas Pakistanis but also for boosting the country’s tourism sector. “To strengthen tourism, it is essential to bring the national airline in line with contemporary demands,” he said.
Privatisation Minister Muhammad Ali recently told Reuters that the government aims to secure Rs86 billion in privatisation proceeds this year. Several major local players — including Airblue, Lucky Cement, Arif Habib Group, and Fauji Fertiliser — have shown keen interest.
According to officials, four pre-qualified consortia are in the final stages of negotiations. Discussions are underway on the share purchase and shareholders’ agreements, and the reserve price will be submitted to the federal cabinet for approval.
The PIA privatisation bidding process is seen as a test case for broader economic reforms, and participants at today’s meeting praised the government’s “professional and transparent” approach.
PIA has recently resumed flights to the UK after more than five years, following the lifting of a ban linked to the pilot licence scandal. European operations also restarted earlier this year after a prolonged suspension.
