Pakistan races to finalise PIA privatisation by October 1 as deficit soars

ISLAMABAD: The privatisation of Pakistan International Airlines (PIA) is set to conclude by October 1, according to an official briefing to the Senate Standing Committee on Privatisation on Thursday.

The government has decided to offer 75 per cent of its shares in PIA to bidders.

Pakistan committed to restructuring its loss-making state-owned enterprises (SOEs) in June 2023 as part of a $3 billion bailout agreement with the International Monetary Fund (IMF).

Shortly after this agreement, the government decided to move forward with the privatisation of the national carrier.

During the Senate committee meeting, Privatisation Commission Secretary Usman Bajwa stated that efforts are underway to ensure that the privatisation process for PIA does not extend beyond the October deadline.

He revealed that six companies have been shortlisted for the airline’s bidding process. However, the timeline may need to be adjusted if the “due diligence” process for these interested companies is not completed on time.

The buyer of PIA will be required to inject Rs425 billion immediately to ensure the airline’s operational stability. The airline’s deficit has now reached Rs500 billion.

For years, Pakistan has been injecting substantial funds into loss-making SOEs, including PIA, one of the largest and most financially troubled entities, which is now nearing its final phase of privatisation.

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