Pakistan to retain stake in PIA amid privatisation efforts

Pakistan intends to retain a stake in the state-owned Pakistan International Airlines (PIA) to capitalise on its potential value increase following the airline’s sale, according to a report by Bloomberg.

Usman Bajwa, Secretary at the Privatisation Commission, announced during a news briefing that the nation aims to finalise the bidding process within the next ten days. The privatisation agency plans to offer a minimum of 51 per cent of PIA’s shares to six pre-selected groups.

PIA has struggled financially, failing to generate a profit for nearly two decades. This sale marks a significant step in the government’s broader strategy to implement economic reforms, which are part of the conditions set by the International Monetary Fund (IMF) for a bailout. Previous attempts to privatise the airline have been unsuccessful.

In addition to PIA, Pakistan plans to divest from ten other state-owned entities, including power distribution companies, within the next year, as per the privatisation ministry.

The government is also soliciting initial bids for the Roosevelt Hotel in New York, considering options such as an outright sale, joint venture, or long-term lease.

Last month, Pakistan shortlisted six groups to bid for PIA, featuring prominent figures and conglomerates. These include tycoon Arif Habib and a consortium led by the Yunus Brothers Group. Pak Ethanol Pvt.’s consortium comprises Switzerland’s Swiss Aviation Group AG, Austria’s Airport Competence GmbH, and Australia’s Pearl Asset Management.

This privatisation drive reflects Pakistan’s commitment to economic reform and stabilisation, aiming to attract investment and improve the financial health of its state-owned enterprises.