Pakistan Extends PIA Privatization Bidding Deadline to October 31 Amid Fresh Concerns

 

The Privatization Commission has extended the bidding deadline for Pakistan International Airlines (PIA) by one month, setting the new date for October 31, 2024. This move is part of efforts to privatize the national carrier, which has been burdened by a massive debt of Rs800 billion. Key dates include signing the contract on October 25 and submitting advance payments by October 28.

Originally, the process was scheduled for early October, with six consortiums participating, including Fly Jinnah, Air Blue, Arif Habib Corporation, and others. The privatization aligns with the International Monetary Fund’s (IMF) recommendations to stabilize Pakistan’s economy by offloading loss-making state-owned enterprises.

However, aviation experts have expressed concerns that further delays could complicate the privatization process. PIA has also been dealing with operational challenges, such as the suspension of European flights after a 2020 plane crash. Addressing these issues will be critical in attracting serious bidders.

Despite the concerns, the extension reflects the government’s commitment to ensuring a thorough and competitive process, which is essential for PIA’s future and broader economic reforms in the country.

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