The Privatisation Commission has completed its preparations for the bidding of Pakistan International Airlines (PIA), which is set to take place today. According to reports, only the Blue World City consortium has submitted the necessary documents to participate in the bidding process.
The bidding is scheduled to commence at 1:30 PM, with the opening of bids taking place at 6:30 PM. The commission had extended the privatisation deadline to October 31 at the request of the International Monetary Fund (IMF), which had originally set a deadline for the end of September.
PIA holds assets valued at Rs152 billion, which include aircraft, slots, and routes. However, the airline is facing a total royalty debt of Rs202 billion, primarily owed to the Civil Aviation Authority (CAA) and Pakistan State Oil (PSO). PIA is projected to collect between Rs16 to 17 billion from its operations.
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The airline currently employs around 7,100 staff members, with more than 2,400 on a daily wage basis. Out of 45 General Managers, 37 are actively fulfilling various roles.
For the final approval of PIA’s privatisation, the Privatisation Commission will seek the board’s consent, along with clearance from the Cabinet Committee on Privatisation. The federal cabinet will also need to approve the reserve price for PIA through circulation.
Notably, out of the six potential contenders initially shortlisted for PIA shares—including Airblue Ltd, Arif Habib Corporation Ltd, Fly Jinnah by Air Arabia, YB Holdings Pvt, Pak Ethanol Pvt, and the Blue World City consortium—only Blue World City moved forward with a formal bid.
Finance Minister Muhammad Aurangzeb has confirmed the government’s commitment to privatising PIA in November as part of its obligations to the IMF under a $7-billion bailout program spanning 37 months.
