The Government will publish an announcement next week to attract new bidders for the privatization of Pakistan International Airlines (PIA), the Privatization Ministry in a statement said Wednesday.
The first failed attempt of the government to privatize PIA cost the National Treasury $ 4.3 million, the National Committee for the Privatization of the Assembly was reported on February 26.
Last month, the Minister of Privatization and Investment, Abdul Aleem Khan, said that the Government would complete all the steps to privatize PIA for May, while the Privatization Commission approved a transaction structure for the second attempt to privatize the national operator based on a disinversion of 51 to 100 percent of its capital actions.
According to a statement from the Ministry, the Privatization Commission had a meeting today, chaired by Muhammad Ali, president of the commission and advisor to the Privatization Prime Minister.
“The Board approved the prequalification criteria for the selection of possible bidders for the privatization of 51PC to the 100pc actions of Pakistan International Airlines Corporation Limited (PIACL),” reads the statement. “A new announcement for [the] It is planned that the expression of interest for the Piacl’s demerging is published next week. “
The statement added that the meeting will continue tomorrow “to consider the remaining elements on the agenda.”
Earlier this month, a PIA spokesman said that the board of directors of the airline approved its financial results by 2024, which showed that the airline achieved a net gain after around 21 years.
According to the results of the FY2024, PIA obtained an operational gain of RS3.9 billion and a net gain of RS2.26bn. The operational margin of the airline was more than 12 percent, which is on par with the performance of any of the best airlines in the world, said the spokesman.
Pia began not to be profitable in 2011, requiring government subsidies. At the end of 2016, the national flag operator was loaded with $ 3 billion in debt. At the end of 2018, the airline was loaded with $ 3.3 billion in debt, compared to $ 2.97 billion the previous year. Government rescues were required for the continuous operation of the carrier.
Last year, in June, the then government had agreed to review the state companies that make losses, including PIA, under an agreement with the International Monetary Fund (IMF) for a rescue of $ 3 billion. But in February 2024, just before the general elections, the Electoral Commission had asked the administration of the self -employed to “refrain” to end the agreement.
