After selling Pakistan International Airlines (PIA) to the highest bidder, the federal government intends to keep a portion of the airline.In the event that the airline’s post-sale valuation increases, the government hopes to get a cut of the profits.Usman Bajwa, Secretary of the Privatization Commission, stated that the date of the final bid would be revealed in ten days. The government plans to divest PIA of at least 51 percent.
For almost 20 years, the national flag carrier has not turned a profit. This is intended to change as part of the current privatization strategy, which also intends to get the nation closer to a new loan agreement with the IMF.
An earlier attempt to sell the airline was not successful, within a year, officials hope to sell ten enterprises, including power distribution companies, according to the Ministry of Privatization. Initiation offers are also being sought for PIA’s Roosevelt Hotel located in New York.
Pakistan shortlisted six groups for the PIA sale last month. Tycoon Arif Habib and a group headed by the Yunus Brothers Group are two among them. Airport Competence GmbH in Austria, Swiss Aviation Group AG in Switzerland, and Pearl Asset Management in Australia form another collaboration.
