Islamabad, Nov 7: Overseas Pakistani Group Bids Rs 1.25 Trillion for PIA
A group of Overseas Pakistani, known as Al-Nahang, has proposed a bid exceeding Rs 1.25 trillion for the privatization of Pakistan International Airlines (PIA).
The group has forwarded an email to the Minister of Privatization, Minister of Aviation, Minister of Defense, and other relevant officials detailing their proposal.
The key points of their offer are.
Debt Settlement: Al-Nahang has offered to pay off PIA’s Rs. 250 billion debts.
No Employee Layoffs: The group has promised not to lay off any employees, instead offering a 100% increase in salaries over 30 months.
Business Plan: Al-Nahang has pledged to implement a robust business plan, including the introduction of modern aircraft to PIA’s fleet.
Engineering and Maintenance Hub: The group has also proposed establishing PIA as an engineering and maintenance hub for other airlines.
The developments came days after Khyber Pakhtunkhwa government expressed interest in participating in the PIA privatization bidding.
According to details, the KP Investment Board wrote to Federal Minister for Privatization Abdul Aleem Khan, expressing its intention to submit a bid.
Earlier, Pakistan Muslim League-Nawaz (PML-N) President Nawaz Sharif said that Punjab Chief Minister Maryam Nawaz advised him to buy Pakistan International Airlines (PIA) and rebrand it ‘Air Punjab.’
In a statement, Nawaz Sharif remarked, “Maryam consulted me, inquiring whether we should take control of the PIA and transform it into a completely new airline.”
Meanwhile, the final bidding stage for the privatization of PIA attracted only a single offer of Rs10 billion ($36 million) for a 60% share in the national airline.
The government had identified six groups as pre-qualified in June, but only the real-estate development firm Blue World City engaged in the bidding, submitting an offer that fell short of the government’s minimum price of Rs85 billion.
The Al-Nihang’s Group has set seven conditions, including Rs100 billion for the acquisition of PIA.
“Al-Nihang’s Group will assume responsibility for all existing PIA liabilities, estimated at Rs250 billion, and will ensure full payment of outstanding obligations as part of this proposal,” it said.
