Amid privatisation setbacks, KP govt steps in to buy PIA

PESHAWAR: A day after the Blue World City Consortium, the sole bidder, failed to meet the minimum sale price of Rs85.3 billion set by the government for the auction of 60 per cent stake in the Pakistan International Airline (PIA), the Khyber Pakhtunkhwa government has decided to buy the national flag carrier.

The Khyber Pakhtunkhwa government, on the instruction of Chief Minister Ali Amin Gandapur, has written a letter to the Privatisation Commission, showing an interest to buy the PIA to turn the loss-making entity into a profitable airline.

The Vice-Chairman of the Khyber Pakhtunkhwa Board of Investment and Trade (KP-BOIT) has formally written a letter to the Privatisation Division.

The letter highlights PIA’s national importance and states that the provincial government, under the chief minister’s directive, has decided to participate in PIA’s future privatisation bidding.

According to the letter, the KP government regards PIA as a valuable national asset and a symbol of the nation’s identity.

The KP chief minister has called for urgent steps to prevent the airline from falling into the hands of a private or foreign firm, the letter said.

The KP government has offered to acquire PIA with a bid Rs10 billion, which was offered by the Blue World City Consortium.

The letter has also requested a meeting with the federal minister for privatisation to discuss the provincial government’s vision and plans for the PIA.

The interest in acquiring the PIA comes at a time when the KP government has had to drop thousands of development projects from its Annual Development Program (ADP) due to financial constraints.

However, KP-BOIT officials told HUM News English that the provincial government has the necessary funds to proceed with the purchase of the PIA.