HIT exclusive: Final privatisation plan for PIA revealed

Final privatisation plan unveil financial outlook, restructuring details

KARACHI: The anticipated privatisation of Pakistan International Airlines (PIA) has moved forward with the bids called yesterday.

Yesterday, Pakistan State Oil (PSO) gave the green light for PIA’s privatisation, clearing the path for the bidding process to commence on June 3, 2024.

HUM Investigation Team (HIT) has obtained a copy of the comprehensive privatisation document, shedding light on the financial projections and restructuring strategies envisaged for the national airline.

PIA privatisation bids invited; international investors assured

According to the disclosed documents, PIA’s revenue for the current fiscal year is projected to exceed $5 billion, with expectations set for a substantial increase in the coming years. By 2028, the revenue target is estimated to soar to Rs 6.5 billion.

However, the documents also reveal the stark reality of PIA’s financial challenges, with the airline recording a staggering total loss of Rs 830 billion. To address this crippling burden, the plan proposes to transfer these losses to a holding company.

Furthermore, the financial breakdown delineates the extent of PIA’s indebtedness, with bank debt amounting to Rs 268 billion and government debt standing at Rs 176 billion. Additionally, the balance sheet highlights a combination of loans, leases, and staff-related losses, totalling Rs 184 billion.

PIA faces losses despite dominating domestic flights

In terms of operational capacity, PIA currently operates with a fleet of 34 aircraft and sustains a workforce of 11,000 employees, according to the disclosed documents. The airline’s reach extends to 34 countries, serving a substantial annual passenger base of 4.7 million.