The privatization of Pakistan International Airlines (PIA) is proving to be a complex process with around 30 steps that need to be taken before the transaction can be finalized.
Despite commitments made to Prime Minister Shehbaz Sharif, this process could take anywhere from six months to a year to complete, according to a national daily.
A No-Objection Certificate (NOC) is needed from 35 lenders who have provided loans to PIA to sustain its operations. The time it will take to secure NOCs from each lender is uncertain, making it unlikely that privatization will be completed by the end of June 2024.
Some concerns rushing the privatization could lead to complications. Completing the process smoothly will require at least six months to a year. Moreover, PIA will need to be broken down into two entities, which involves several additional steps. There is also the risk that the International Monetary Fund (IMF) may raise objections to this, as settling its debts could have significant fiscal implications.
Despite claims from the previous caretaker government that all preparations for PIA privatization are complete, formal steps still need to be taken to move the process forward.
