Deadline Approaches for Bidders in PIA Privatization Sale

Prospective buyers of Pakistan International Airlines (PIA) have until June 3, 2025, to submit expressions of interest to Pakistan’s Privatisation Commission. The government is making a renewed push to sell a majority stake in the struggling national carrier, with roadshow presentations held in Lahore, Karachi, and Islamabad to brief potential investors.

The privatization effort is being closely watched, particularly as the International Monetary Fund continues to press Pakistan to expedite the divestment of state-owned enterprises, including PIA. The airline has long faced operational and financial challenges, and a previous attempt to sell it last year failed.

This time, the government says it has cleared several major hurdles. These include the elimination of an 18% general sales tax on the import of new aircraft—part of a broader fleet overhaul required in the sale terms—and the removal of substantial liabilities from PIA’s balance sheet. Officials also highlight the European Union’s recent decision to lift its ban on PIA flights as a key value booster for the airline.

The offering includes between 51% and 100% of PIA’s share capital, along with full management control. Authorities believe the streamlined financials and regulatory improvements now make the carrier a more attractive investment opportunity.

PIA operates out of Islamabad International Airport and serves domestic and international routes. With the government under pressure to reduce its fiscal burden and reform key sectors, the successful sale of PIA is seen as a critical step in meeting international commitments and reviving investor confidence.

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Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com