The privatisation commission said that the auction for Pakistan International Airlines (PIA) will take place on October 1.
Six bidders have already been qualified, including Fly Jinnah, a YB Holdings-led consortium, Air Blue Limited, a Pak Ethanol-led consortium, Arif Habib Corporation, and Blue World City.
PIA has been dealing with a crippling debt load, which is estimated at around Rs800 billion ($2.9 billion). The government has intervened with multiple loans to support the airline’s daily operations, but the financial pressure has persisted.
Earlier, the government targeted completing the PIA privatisation by August 14. However, delays surfaced as bidders requested updated financial data, including audited accounts, aircraft lease agreements, and details about the airline’s suspended routes.
It is worth noting that PIA flights to Europe have been grounded for nearly four years, after safety concerns that arose after a plane crashed in Karachi in 2020, which claimed 97 lives and prompted a European Union Aviation Safety Agency ban.
According to Express News, the decision to privatise the airline is part of a bigger plan supported by the International Monetary Fund (IMF), which has been urging Pakistan to divest its loss-making state-owned enterprises if wants to stabilise the struggling economy.
Discussions are ongoing about restoring PIA’s European routes, with Pakistan’s Deputy Prime Minister Ishaq Dar recently stressing that resolving the issue remains a “top priority” following a five-day visit to London.
