Islamabad Stays on Track for Early October PIA Auction

The Pakistani government is set to auction Pakistan International Airlines (PIA) in the first week of October 2024, despite a potential issue with the central bank. A Privatisation Commission spokesperson confirmed that the auction will proceed as planned.

Spokesperson Ahsan Ishaq stated, “It has been mutually decided with the pre-qualified bidders to hold the final auction for PIA in the first week of October.” The bidders include AirBlue, Arif Habib Corporation, Blue World City, Fly Jinnah, the Pak Ethanol (Pvt) Consortium, and the YB Holdings Consortium.

However, the State Bank of Pakistan has recently refused to grant a waiver on PKR268 billion (USD962 million) in commercial loans and financial guarantees associated with PIA. This decision could impact the planned sale date. “We are working with the central bank to resolve the issue of outstanding commercial loans before the final bid,” Ishaq added.

The government aims to sell between 51% and 100% of PIA, which has been a financial burden on taxpayers. The sale is part of a broader effort to privatize several state-owned entities and improve financial performance.

Pak Ethanol’s consortium includes international partners such as AsiaPak Investments Limited (Hong Kong), Swiss Aviation Group (Switzerland), Airport Competence (Austria), Pearl Asset Management (Australia), and Capital A Consultancy (Malaysia). The YB Holdings Consortium features domestic companies like AirSial, Serene Air, and Liberty Daharki Power Limited.

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