Overseas Pakistani consortium offers to buy PIA for Rs125bn

ISLAMABAD: An overseas Pakistani business consortium, Al-Nahang Group, has offered to buy the Pakistan International Airlines (PIA), for Rs125 billion besides pledging to settle the national flag carrier’s outstanding liabilities of Rs250 billion.

According to media reports, the Al-Nahang Group has formally submitted its bid via email to the ministries of privatisation, aviation and defence, showing interest to acquire PIA.

In the proposal, the group has assured that it would not lay off the employees besides pledging to salary increment ranging from 30 per cent to 100 per cent per year.

The consortium has also presented a comprehensive business plan aimed at revitalising PIA, which includes the modernisation of the fleet and transform it into a maintenance hub for other airlines in the region.

The proposal has promised to position PIA as a competitive force within the international aviation market.

The International Monetary Fund (IMF) has asked the Pakistani government to privatise loss-making state entities, including the PIA.

Failure to privatise the PIA could stall the next installment of the IMF loan programme.

Just last month, the government faced setbacks when it offered to sell 60 per cent of PIA’s stakes for Rs85 billion but the sole bidder, Blue World City Consortium, offered only Rs10 billion. This low bid forced the government to halt the privatisation of the PIA.

Blue World City later revised its bid, hinting to pay between Rs30 and Rs85 billion for the airline’s acquisition.

Earlier, Privatisation Minister Abdul Aleem Khan said that the PIA could not be sold at a

. He had said that his role was to facilitate the airline’s sale and not oversee its restructuring.

The Al-Nahang Group’s proposal could represent a turning point for PIA, should it be accepted by the government, with the potential to restore stability to Pakistan’s beleaguered aviation sector.