According to Bloomberg, the federal government of Pakistan plans to retain a stake in Pakistan International Airlines (PIA) even after selling the airline to the highest bidder. The aim is to benefit from potential future profits as the airline’s value increases post-sale. Usman Bajwa, Secretary of the Privatisation Commission, mentioned that the final bidding date for PIA would be announced within the next 10 days. The government intends to sell at least a 51 percent stake in PIA, the national flag carrier which has struggled financially for nearly two decades.
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This privatization initiative is part of broader efforts to turn around PIA’s financial performance and to support Pakistan’s negotiations for a new loan arrangement with the International Monetary Fund (IMF). Previous attempts to privatize the airline were unsuccessful. In addition to PIA, the Ministry of Privatization aims to privatize ten other entities, including power distribution companies, within a year. The ministry is also seeking initial bids for PIA’s Roosevelt Hotel in New York.
Six groups, including tycoon Arif Habib and a consortium led by the Yunus Brothers Group, have been shortlisted for the PIA sale. Another consortium includes Swiss Aviation Group AG from Switzerland, Airport Competence GmbH from Austria, and Pearl Asset Management from Australia.
