PIA’s privatisation today, Blue World City submits sole bid

ISLAMABAD: The government has received a sole bid from Blue World City Consortium for a 60 per cent stake in Pakistan International Airlines (PIA).

Following approval of the reserve price from the Cabinet’s Privatization Committee, the bid will be opened at 6:30pm on Thursday (today).

Blue World City Chairman Saad Nazir, Blue World Aviation CEO Maisam Raza, Blue Hills CEO Chaudhry Naeem Ijaz, Blue World City CEO Chaudhry Nadeem Ijaz and consortium representative Wali Muhammad submitted the bid.

Once the Privatization Commission’s board approves the reserve price, it will be submitted to the Cabinet Privatization Committee, led by Deputy Prime Minister Ishaq Dar.

If the bid exceeds the reserve price, it will be accepted, and the privatization will proceed before it was approved by the federal cabinet.

Blue World City Consortium remained the sole bidder to submit documents for PIA’s privatisation. The bid-opening process will be started 6:30pm.

PIA currently holds assets worth Rs152 billion, including aircraft, slots and routes, with total royalties amounting to Rs202 billion, involving entities like the Civil Aviation Authority (CAA) and Pakistan State Oil (PSO).

Outstanding dues for PIA amount to roughly Rs16-17 billion. PIA employs around 7,100 staff with over 2,400 daily wagers.

Sources said the Privatization Commission Board will finalise the process, with additional approvals from the Cabinet Privatization Committee and the federal cabinet, which will review the reserve price via a circulation process.

Also read: PIA plane transported from Karachi to Hyderabad via road

While Blue World City Consortium remains the sole bidder, the Privatisation Commission has reached an agreement on key terms with the company.

Negotiations with Blue World City Consortium are expected if the bid does not meet expectations. Revisions to existing rules have been made to facilitate single-bid success if necessary, with final approval required from the federal cabinet.

According to the terms, PIA employees will continue to work for 18 months, with approximately 70 per cent of them being eligible for renewed job offers thereafter. The investing company has pledged to inject $300 million over five years and aims to expand PIA’s fleet to 45 aircraft, while reinstating services on all PIA routes.

Six of PIA’s directors and the majority of its 37 general managers are holding dual positions. The airline has a total of 45 general managers, with 37 actively performing their duties.

PIA Workforce To Remain Intact

Blue World Aviation CEO Maisam Raza confirmed the bid for a 60 per cent stake in PIA, expressing readiness to invest in the airline’s success, including expanding its fleet to 40-50 aircraft.

Raza assured that no employees would face layoffs for 18 months post-privatisation, with the current workforce at approximately 7,000.

He emphasized their commitment to growing PIA’s workforce and fostering competition in Pakistan’s aviation industry following the airline’s privatisation.