Sole bid for PIA formally rejected, cabinet to review next steps

ISLAMABAD: The Privatisation Commission’s board has formally rejected a Rs10 billion bid by the Blue World City Consortium for a 60 per cent stake in Pakistan International Airlines Corporation Limited (PIACL).

The decision now goes to the Cabinet Committee on Privatisation for further review, according to a statement released by the ministry.

A meeting chaired by Federal Minister for Privatisation Abdul Aleem Khan discussed several issues including the privatisation of national flag carrier.

The board decided to form a three-member committee to oversee the privatisation process, with the focus on accelerating the divestment of PIACL and considering different strategies for its sale.

Minister Abdul Aleem Khan said that privatisation process must follow legal regulations and prioritise national interests.

He directed that privatisation of state-owned enterprises like PIA should proceed without delays. The minister also stressed the need to improve future privatisation bids to attract more favourable offers.

He noted that while caretaker government had laid out a framework for PIA’s privatisation the current government must address the concerns of the institutions involved. The minister also stressed importance of learning from PIA’s privatisation experience to streamline future processes.

During the meeting, the board reviewed the progress of other ongoing privatisation projects.

The Secretary of the Privatisation Commission briefed the board, mentioning interest from international airlines such as Turkish Airlines and Singapore Airlines in PIA’s privatisation.

The minister urged the board to carefully consider all parties that meet the pre-qualification criteria.

The meeting also covered privatisation efforts for other state-owned entities, with members presenting proposals and sharing suggestions for the way forward.

Read next: No rush for new taxes: FBR tells IMF, considers fuel tax reduction