Pakistan Seeks Investors for PIA Privatisation, Offering Up to 100% Stake

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The Pakistani government, through its Privatisation Commission, has initiated the process to privatize PIA – Pakistan International Airlines by inviting expressions of interest (EOI) for the acquisition of a 51-100% share capital and management control of the flag carrier. This move, announced on April 2, comes after the segregation of PIA’s “non-core” assets and liabilities into a newly established holding company, paving the way for the sale of Pakistan International Airlines Corporation Limited (PIACL).

The offer includes PIACL’s core operations—spanning its aircraft fleet, staff engaged in airline and allied services, and various operational agreements critical to its functioning. With the transition, PIACL will become a wholly-owned subsidiary of the newly formed PIA HoldCo, which will be listed on the stock exchange, thereby delisting PIACL. The Pakistani government currently holds approximately 96% of PIACL’s issued shares.

Recent discussions have involved entities from Qatar, Saudi Arabia, the United Arab Emirates, and other countries expressing interest in acquiring a stake in PIA, reflecting a global investment interest in the airline.

The EOI is open until May 3, 2024, to various entities excluding individuals and government-owned or controlled bodies, with a non-refundable processing fee of USD5,000 required for submission. This marks a critical step in the government’s efforts to revitalize the national carrier, which has struggled with financial losses and significant debt.

EY Consulting, alongside other advisory and legal firms, is guiding the privatisation process, offering potential investors a unique opportunity in an airline that transports approximately five million passengers annually and operates flights to 34 destinations. The privatization initiative highlights PIA’s strategic international routes and growth potential in Pakistan’s aviation market, which is expected to expand significantly in the coming years.

This privatization bid represents a significant transformation effort for PIA, aiming to leverage Pakistan’s demographic and diaspora strengths to rejuvenate the airline’s operations and financial health.

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