The privatization of Pakistan International Airlines (PIA) has failed to attract foreign companies to buy majority shares in the company.
Only two firms from the Gulf showed initial interest and deposited $5,000 for investment documents. However, they have yet to submit their tender applications, despite the deadline for tender requests being May 3.
Due to below-par response from potential investors in the initial round, the deadline for tender submissions may be extended by a month.
Privatization officials and PIA’s financial advisors are struggling to attract foreign investment. Despite roadshows and related efforts, the response has been disappointing.
Authorities reportedly aim to pocket $250-300 million from the PIA sale. The process, part of reforms backed by the International Monetary Fund, aims to sign a share price deal by June 24.
Being the largest player in Pakistan’s aviation industry, PIA faces challenges including competition from Middle Eastern carriers due to a lack of direct flights to key destinations.
View Comments
"Authorities reportedly aim to pocket $250-300 million"? Surely you mean "Politicos"
The government should go for Public Private Partnership for PIA, and first remove the Corrupted Political Staff immediately from PIA who are hired by the PPP PMLN and other Political Mafias in the country, if they removed more than half of PIA would surely be on the track.
What is the point? Why the obsession that govt should own companies?
UBL was privatized in 2002, it was making losses every year. Now it makes profits every year and govt taxes this year are upto 50% of profit. So govt is getting profit for doing almost nothing.
PIA is loosing PKR 235,000 per minute, and we are paying these losses. Sell PIA, heck give the buyer 2 months of loss payments in advance, and then when it makes profit, tax it.
Ap khareed lo
There is nothing in PIA worth buying, except the brand name. All planes are scrap metal. The logical thing would be to pay someone to take control of PIA and remove loss from govt balance sheet.
PIA is the priceless business opportunity to buy with over 200 billion revenue and exceptionally expensive landing 🛬 slots at the prime times on the best airports around the world 🌎 not many airlines have those kinds of precious opportunities that PIA has.... wishing PIA Privatisation all the best.... insha'Allah will get best buyer soon.
Mafia is running PIA, it needs aviation professionals to run the airlines.