The government of Pakistan plans to hold the final bidding for Pakistan International Airlines (PIA) by mid-December, with four pre-qualified consortia in advanced negotiations over commercial terms, according to the Secretary of the Privatization Division.
The update was delivered to the National Assembly’s Standing Committee.
Talks are ongoing with the shortlisted bidders regarding share purchase and shareholders’ agreements, the secretary said, adding that the federal cabinet will approve the reserve price ahead of the bidding. Pre-bid negotiations have been underway for the past three days.
The four pre-qualified bidders include Fauji Fertilizer Company Ltd, Air Blue (Pvt) Ltd, a consortium of Lucky Cement, Hub Power Holdings, Kohat Cement and Metro Ventures, and a group led by Arif Habib Corporation with Fatima Fertilizer, City Schools and Lake City Holdings. Earlier this month, the Privatization Commission Board approved the inclusion of AKD Group Holdings (Pvt) Ltd in the Arif Habib-led consortium.
Committee chairman Farooq Sattar urged the government to ensure robust job protection for PIA employees and transparency in the sale process. The previous reserve price for PIA was set at Rs. 85 billion.
“The airline has to be sold, but employee protection must be guaranteed,” Sattar said. The committee recommended at least five years of job protection for PIA staff and full safeguards for pensioners.
Officials told lawmakers that PIA currently operates 18 aircraft and will require 35 to 38 more for sustainable operations. Future owners will be required to retain experienced staff.
In a related development, the government is considering transferring power distribution companies (DISCOs) to private management under long-term concession agreements, following a Turkish model, rather than full privatization. These agreements could last up to 25 years, allowing private entities to invest in and upgrade infrastructure.
The first phase will target the privatization of Islamabad, Gujranwala, and Faisalabad electric supply companies, though the issuance of their requests for proposals has been delayed. Officials expect the process to reach an advanced stage by March.
The Power Division also told the committee that all three-phase electricity meters nationwide will be replaced with advanced metering infrastructure (AMI) meters by December 2026 to curb power theft. In the Islamabad region, 1.5 million AMI meters have already been installed, reducing losses by 2%.
Addressing a 33-year delay in the privatization of Pakistan Engineering Company (Peco), officials said the company has been placed under the Special Investment Facilitation Council (SIFC) by the prime minister. The committee requested a formal progress report from the SIFC.
The Privatization Division also briefed lawmakers on the status of the Roosevelt Hotel in New York, while the Ministry of Industries and Production confirmed that all pending dues of Utility Stores employees have been cleared.
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As long as FORM 47 GOVT running the country the GDP will remain in reverse gear. It will keep on selling precious assests. Now it has started targeting minerals wealth and looting huge money.
In fact it is born illegal so love to make illegal money.
If you want to moderate my my comments, let me know. I want to see how do you see future of Pakistan under form 47 govt.
I will never share any comments through your media channel.
Around 6% of GDP went to deep pockets pushing millions below poverty line. AFter IMF report on Pakistan, foreigners confidence already at bottom is vanished. Once bajwa said, Corruption is not the problem for us. IMF certifies his statement.