Pakistan to Relaunch PIA Privatisation Drive This April
The Pakistani government is set to relaunch its privatisation campaign for Pakistan International Airlines by the end of April 2025, according to a senior adviser on privatisation. The move follows a failed attempt in 2024 and comes amid continued pressure from the International Monetary Fund (IMF) to reform state-owned enterprises as part of a USD7 billion bailout package.
Muhammad Ali, an adviser to the government, told Reuters that earlier concerns from pre-qualified bidders—mainly regarding taxation and PIA’s financial balance sheet—have now been addressed. The previous auction effort attracted only one bid, which fell well below the government’s expectations. While a significant portion of PIA’s debt had been shifted to a separate holding company, remaining liabilities and taxation on aircraft purchases discouraged potential investors.
Although Pakistan initially aimed to complete the airline’s privatisation by July 2025 to meet IMF conditions, officials now concede that the deadline is no longer achievable. The government is instead targeting the end of 2025 for the transaction to be finalized.
The upcoming expression-of-interest campaign will open by the end of April, with potential bidders expected to begin due diligence in July. A formal bid evaluation process is scheduled to continue through September. The government is offering between 51% and 100% ownership of PIA, along with full management control.
Despite setbacks, the government remains committed to selling PIA and other state-owned assets, hoping to attract credible investors and meet international reform obligations. The outcome will be closely watched by global financial institutions and aviation industry stakeholders.
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Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com