Government prepares for second round of PIA privatisation bids

ISLAMABAD: The government is preparing to receive enhanced bids for the privatization of Pakistan International Airlines (PIA) as it gears up for a second attempt following a recent unsuccessful bid to sell the struggling national carrier, as reported to the National Assembly.

Federal Minister for Law and Justice Azam Nazeer Tarar expressed optimism about receiving improved bids this time, noting that the restoration of routes to Europe is a positive development.

His comments came in response to sharp criticism from Naveed Qamar, Abdul Qadir Patel, and Shazia Marri of the Pakistan People’s Party (PPP), a significant ally of the ruling PML-N, regarding the government’s failure to either revitalize or privatize PIA.

Tarar emphasized that the privatization process must be meticulously planned and expressed hope for better bids and a more favorable outcome this time around. He assured that lessons learned from previous efforts have been applied to enhance the forthcoming plan’s success, adding that while the earlier bidding was not technically flawed, it did experience certain issues, necessitating the involvement of top-tier firms.

Also read: Govt seeks direct sale of PIA to foreign buyers after first auction fails

He also mentioned that Muhammad Amir Hayat, a retired air vice marshal from the Pakistan Air Force, has stepped down as the chief executive officer of PIA Holding Company Limited (PIAHCL), with his departure effective December 9, 2024, returning to his original department.

In the previous bidding round, the Blue World Consortium had submitted a bid of Rs10 billion, which was far below the anticipated minimum price of Rs85 billion. The Privatization Commission Board evaluated this highest bid but ultimately chose to reject it.

Tarar highlighted that globally, only a select few countries operate state-owned airlines, suggesting that privatization may be more in line with international standards.