- Reuters
- 39 Minutes ago

Govt aims to conclude PIA privatisation by end of fiscal year
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- Web Desk
- Jan 10, 2025

KARACHI: The government aims to privatise Pakistan International Airlines Company Limited (PIACL) by the end of the ongoing fiscal year. This plan was shared during a meeting of the National Standing Committee on Privatisation, chaired by MNA Farooq Sattar.
According to Business Recorder, the committee also discussed potential options for the privatisation of the Roosevelt Hotel in New York City, which could help address the Rs628.5 billion liabilities and losses currently tied to PIA Holding Company.
Three privatisation options for the Roosevelt Hotel are being considered including an outright sale, a joint venture, or a long-term lease spanning 99 years. These options are expected to be evaluated by the Cabinet Committee on Privatisation (CCoP) under direction of the Minister of State for Finance. Ernst & Young has been re-engaged as the financial advisor for the privatisation of PIACL.
The Privatisation Commission Secretary, Usman Akhtar Bajwa, noted that new clauses would be introduced into the transaction structure for PIACL, and a fresh Expression of Interest (EOI) from potential investors would be sought by the end of the month. The PIACL’s reopening of European routes is expected to boost investor interest.
Another key update was shared regarding the International Monetary Fund (IMF), which has agreed to remove the 18 per cent GST on aircraft, providing much-needed relief for PIACL.
The IMF also agreed to clear Rs45 billion of negative equity tied to the airline. This, combined with the reopening of European routes, has generated a positive momentum, with the government keen to capitalise on it by moving quickly on the privatisation process.
As for State Life Insurance Corporation (SLIC), its privatisation will be considered after certain amendments are made to the Life Insurance Nationalization Order (LINO). SLIC’s privatisation is still in its early stages, with more developments expected in the future.
In a related development, Pakistan International Airlines (PIA) is set to resume its direct flights to Paris. The first flight will depart from Islamabad on January 10, marking PIA’s return to the Paris route after a four-and-a-half-year hiatus.
The ban on PIA flights to Europe, imposed by the European Union in May 2020 following the tragic crash of flight 8303, is now lifted. PIA’s first flight to Paris has nearly sold out, with strong demand for tickets.
Despite approximately 40 per cent of the business class seats being booked by PIA officials, the airline is expected to generate over Rs107 million from the inaugural flight alone.
PIA plans to offer two direct weekly flights to Paris. To improve passenger experience, the airline has introduced an in-flight wireless entertainment system, accessible via mobile devices, tablets, and laptops.
The spokesperson for PIA said that the airline’s new service offers cost-effective fares while saving time for passengers travelling between Pakistan and France.
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