The federal government has decided to restart the privatization of Pakistan International Airlines (PIA), with expressions of interest set to be invited within the month. The final decision on the matter will be made during a meeting of the Prime Minister’s Committee on Privatization, officials confirmed.
At a recent meeting of the National Assembly Standing Committee on Privatization, Usman Bajwa, Secretary of the Privatization Commission, updated members on the renewed process. He also disclosed that the International Monetary Fund (IMF) has approved tax exemptions on aircraft for airlines other than PIA, enabling them to compete more effectively with regional carriers.
Also Read: PIA Cuts Fares for International Flights
Farooq Sattar, Chairman of the Privatization Committee, stressed the importance of ensuring job security for PIA employees for at least the next five years. The Privatization Commission assured that employee protection will remain a priority, with final details to be finalized before the bidding process begins.
The government has already assumed responsibility for PIA’s liabilities, which amount to Rs 650 billion, and is working on settling an additional Rs 45 billion in dues before privatization. PIA’s assets are valued at Rs 155 billion, while its liabilities stand at Rs 200 billion. The new buyer will also be required to add 15 to 20 new aircraft to PIA’s fleet as part of the acquisition.
In addition to PIA, the Privatization Committee is also focused on the privatization of Faisalabad, Gujranwala, and Islamabad Electric Supply Companies, with plans for a more accelerated process after the appointment of a financial advisor.
