Government to retain 49 per cent ownership amidst PIA’s privatisation process

ISLAMABAD: The Minister for Privatisation Abdul Aleem Khan chaired a meeting to discuss the process of divesting Pakistan International Airlines (PIA) on Thursday.

During the Privatisation Commission meeting, the pre-qualification committee approved the evaluation of pre-bids for the airline’s privatisation. The Privatisation minister described the process as an “attractive opportunity” for both local and international investors.

Read more: HIT exclusive: Final privatisation plan for PIA revealed

Khan noted that the Pakistani business community has expressed interest in this opportunity for some time. Khan also mentioned that the privatisation endeavour aims to remove most of the national carrier’s “liabilities” from the country’s “balance sheet”.

The government initiated the privatisation process by requesting bids for the national airline with a deadline set for a month.

It plans to retain a majority stake, with 49 per cent of PIA’s shares to remain with the Pakistani government, while the remaining 51 per cent will be offered in the open market for potential investors.

Administrative control over the airline will be transferred to the investors holding the majority stake. Reports suggest that the national airline will be awarded to the highest bidder.

Earlier, PIA announced a special offer for pilgrims intending to perform the holy pilgrimage Umrah in Saudia Arabia.

Read more: PIA announces airfare discounts for Umrah pilgrims

According to reports, from April 7 to April 11, tickets from various cities of Pakistan to Jeddah, Madina and Riyadh in Saudia Arabia will be available at a discounted rate.

The national airline announced a 30 per cent reduction in ticket prices. With the promotional discount, economy class tickets could go for as low as Rs50,000.

PIA was founded as Orient Airways 1946, a year before Pakistan’s independence. The airline carrier was later nationalised. The airline began its operations from Karachi’s Jinnah International Airport. The national carrier would not start international services until 1955.

PIA became the word’s first non-communist airline to fly to China in 1964. It also played a role in establishing United Arab Emirates (UAE)’s airline Emirates in 1985.

Sources indicate that PIA currently maintains a fleet of 34 aircraft and employs a workforce of 11,000 individuals.

The national airline faced bans from European, British, and American airspace in 2020 due to concerns about the authenticity of pilot licenses issued in Pakistan.