Prime Minister Shehbaz Sharif ordered the relevant authorities to guarantee “transparency” in the process of privatization of Pakistan International Airlines (PIA) on Friday, urging at its end within the period of time given.
Months after his first attempt to sell PIA stagnated, the government invited new offers with more incentives for buyers on Thursday. Investors can present an expression of interest before June 3, and the bidding process is expected to take place between October and December. The Government offers 51 to 100 percent of capital shares, with management control of the National Flag Operator.
While presiding over a meeting to review the ongoing privatization process today, Prime Minister Shehbaz emphasized that transparency must be an integral part of the procedure.
“To guarantee transparency, the privatization of PIA and all future state companies must be broadcast live on television and digital platforms,” said the prime minister, emphasizing the importance of Roadshows and investors fully involved in the privatization process.
The meeting was reported that a comprehensive strategy for the dissemination of investors had been developed in collaboration with consultants and was fully implemented.
Meanwhile, the prime minister was also informed about the tender criteria, the required period of time and the conditions to participate in the bidding process.
In March, the Minister of Privatization and Investment, Abdul Aleem Khan, said the government would complete all the steps to privatize PIA for May.
As part of the reforms urged by the International Monetary Fund (IMF), the Privatization Commission said in April 2024 that it was putting a participation that varies from 51pc to 100pc of PIA.
In a newspaper ad, the panel established a deadline of May 3, 2024 to receive statements of interest in PIA, which had accumulated delays in the hundreds of billions of rupees, and appointed EY consulting as financial advisor for the agreement.
However, the agreement stagnated as the only offer of RS10 billion for the consortium of the city of Blue World was around RS75BN lower than government expectations.
The first attempt by 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 25 of this year.
Privatization Secretary Jawad Paul informed the Committee that $ 4.3 million had been paid to the financial advisor Ernst & Young (E & Y) of a total rate of $ 6.8 million, which represents 63 percent of the agreed payment.
