Six bidders to participate in October 1 auction of debt-ridden PIA

ISLAMABAD: The Privatisation Commission Board of Pakistan announced on Friday that the auction for Pakistan International Airlines (PIA) will take place on October 1.

According to Express News, this decision came after a meeting to review the ongoing privatisation process of the national airline.

In its statement, the commission mentioned that they would adjust the rules for bidders to make the auction process smoother. They also said that six bidders have already been pre-qualified for the sale.

These include Fly Jinnah, a consortium led by YB Holdings, Air Blue Limited, a consortium led by Pak Ethanol, Arif Habib Corporation, and Blue World City.

PIA has been struggling with a huge debt of about Rs800 billion ($2.9 billion). Over the past few years, the government has given the airline several bailout packages to help with its operational costs.

Originally, the goal was to complete the privatisation by August 14. However, the deadline was extended because the bidders wanted updated financial statements, aircraft lease agreements, and information about the airline’s flights to Europe, which have been suspended for nearly four years.

This privatisation move follows advice from the International Monetary Fund (IMF), which has recommended that the government sell all loss-making state-owned companies to improve the economy.

Officials have also been talking about restarting PIA flights to Europe. Deputy Prime Minister Ishaq Dar called this issue a “major priority” during a recent five-day trip to London.

PIA flights to Europe were suspended after a tragic plane crash in Karachi in 2020, which killed 97 people. Concerns about pilot licensing after the crash led to a ban by the European Union Aviation Safety Agency.

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