Islamabad: A significant development has emerged regarding the privatization of Pakistan International Airlines (PIA), as the government announced on Thursday that 10 major parties have completed initial documentation expressing keen interest in the process. Among these parties are three private airlines currently operating within Pakistan.
The disclosure was made during a media briefing by Abdul Aleem Khan, Federal Minister for Privatization, Investment Board, and Transport. Khan revealed that these parties are forming consortiums with local and foreign partners.
In addition, Khan announced that the Privatization Commission has extended the deadline for the submission of Letters of Intent (LoIs) for PIA’s privatization by 15 days. The Privatization Commission Board also confirmed this extension on Thursday, setting the new deadline for LoI submissions for May 18, previously scheduled for May 3. Khan emphasized that there would be no further extensions beyond this date.
According to reports from Bloomberg, Arif Habib has submitted a Letter of Interest (LoI) to participate in the bid for the stake sale of state-owned PIA. Additionally, Akram Wali Muhammad, the Managing Director of Gerry’s Group, has reportedly submitted an initial bid.
Addressing concerns about inaccuracies in reporting on PIA’s privatization, Khan assured that progress was promising. He highlighted the airline’s potential profitability, especially with the addition of new aircraft.
Khan stressed the importance of privatizing PIA, citing substantial losses estimated at 830 billion rupees and asserting that privatization would serve the nation’s interests.
Responding to opposition from PPP Chairman Bilawal Bhutto Zardari, Abdul Aleem Khan expressed a desire to meet with him to discuss the matter, emphasizing that privatization was in the nation’s best interests.
Khan emphasized that the government would save billions by privatizing state-owned institutions, redirecting funds towards welfare projects. He underscored that it is not the government’s role to conduct business or manage enterprises, highlighting the need for private sector involvement in modernizing and transforming these institutions into profitable ventures.
Furthermore, Khan disclosed that other entities, including Steel Mill, Discos, First Women Bank, and House Building Finance Corporation, are also undergoing privatization, with swift action to follow government directives.
Khan stressed the importance of involving the private sector in revitalizing these entities to adapt to modern demands and ensure profitability. He reassured that all obligations of PIA would be fulfilled before privatization to ensure a lucrative deal.
In response to questions, Khan expressed the government’s intent to privatize six to seven Discos while retaining control of three strategic Discos. Regarding PIA’s flights to Saudi Arabia for Hajj and Umrah, he highlighted their profitability and suggested expanding similar arrangements to Europe, America, Canada, and Middle Eastern countries.
Khan also revealed that the 10 renowned companies expressing interest in PIA’s privatization are seeking partnerships with international firms and have requested a two-week extension, which has been approved by the Prime Minister.
Finally, Khan stressed the importance of transparency in all privatization processes, committing to ensuring integrity and meritocracy to prevent unwarranted criticism.