PIA Privatization: Bidding to Begin October 1, Draft Presented to Investors, Government to Finalize Today

Pia

Islamabad – The privatization process for Pakistan International Airlines (PIA) is set to move forward, with bidding scheduled for October 1st, according to the Secretary of the Privatization Commission. Investors have already received the draft agreement, and the government is expected to sign the final version today. Pre-qualified bidders are required to submit their bid security by September 27. The selected buyer will be obligated to invest an initial sum of 65 to 70 billion rupees and increase PIA’s aircraft fleet from 18 to 45 over the next five years. Employee rights, including pensions, will be safeguarded under the agreement, and penalties will be imposed on the buyer in case of non-compliance. Furthermore, the government has absorbed 600 billion rupees of PIA’s 800 billion debt, leaving the airline virtually debt-free. The federal cabinet will give the final nod to the bidding process.

Details of the privatization plan indicate that 60% of PIA’s shares will be sold. Employee benefits and pensions are guaranteed to be protected, and measures are being taken to resolve the longstanding European flight ban. The government is also committed to ensuring job security for PIA employees for the foreseeable future. Over the next five years, the new buyer will need to expand the airline’s fleet to 45 aircraft. The bidding process will culminate on October 1, and all interested parties must deposit their security funds by September 27.

An official from the Privatization Commission disclosed to a parliamentary committee that six pre-qualified bidders have already received the final draft of the bidding documents. These documents will be signed with the bidders today. As the process advances toward the final financial bid, initial feedback from the investors will be gathered. The financial bidding will ultimately decide the fate of PIA’s 60% shares. Usman Bajwa, Secretary of the Privatization Commission, briefed the National Assembly’s Standing Committee on the matter, outlining key dates and processes. The draft agreement is set to be signed on September 25, while the pre-qualified bidders must submit their bid security by September 27. Bajwa also noted that since visiting PIA’s Karachi facilities in June, a series of pre-bid meetings have been held throughout July, August, and September to finalize the process. 

This privatization is considered a critical step toward revitalizing the national carrier, long burdened by financial woes. By shedding 60% of its shares and receiving fresh capital, the government hopes to place PIA on a more stable footing, with the expectation that the new owner will breathe life back into the struggling airline.

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