Islamabad, Dec 1: The Pakistani government is accelerating efforts to privatise Pakistan International Airlines (PIA) through a government-to-government (G2G) deal, targeting completion by December 31, as reported by ARY News.
Sources indicate that Abu Dhabi and Qatar have shown strong interest in investing in PIA, marking a promising step toward foreign investment. Negotiations are ongoing to finalise the terms of the agreement.
Additionally, the Securities and Exchange Commission of Pakistan (SECP) is offering substantial incentives to attract investors, aiming to streamline the privatisation process and provide necessary support for a smooth transition.
In another positive development, the reopening of PIA’s European routes has bolstered its financial performance. With European operations resumed, the airline is seeing increased revenues. Direct flights to the UK, including London and Manchester, are now set to commence, thanks to clearance from the European Union Aviation Safety Agency (EASA).
PIA is also enhancing its fleet by activating four Boeing 777 aircraft to support the expanded routes to Europe and the UK. This move is expected to significantly improve the airline’s international connectivity and financial outlook.
These efforts, coupled with strategic expansion and operational improvements, are projected to reduce PIA’s annual losses and strengthen its long-term viability.
Finance Minister Muhammad Aurangzeb stated in October 2024 that the government aims to privatise PIA and three power distribution companies before the end of the year. Initially, PIA’s privatisation was planned for October 1 but has been delayed to October 31 due to limited bidder interest, legal challenges, fleet issues, and concerns from civil aviation authorities.
The government remains committed to privatising struggling entities like PIA and implementing reforms in the power sector to achieve financial and operational stability.
