In a major development under Pakistan’s ongoing privatisation plan, the government has shortlisted four groups to bid for a stake of up to 100% in Pakistan International Airlines (PIA), the national carrier struggling with losses.
The shortlisted bidders include Lucky Cement-led consortium, Arif Habib Corporation Group, Fauji Fertilizer and Airblue. With this move, the privatisation process enters a crucial phase as due diligence has now commenced.
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Pakistan plans to hold final bidding to sell its national airline by October and complete the sale by the end of this year. Earlier, five consortiums submitted expressions of interest for a 51–100 percent stake in PIA after the government restructured its balance sheet to make the deal more attractive.
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The governmnt has also scrapped the sales tax on leased aircraft and is providing limited protection from legal and tax claims. Around 80 percent of the airline’s debt has been transferred to the state.
PIA has remained among the government’s most expensive burdens, having piled up more than $2.5 billion in losses over the past ten years and continuing to operate through frequent financial bailouts that have placed a major strain on Pakistan’s stressed finances.
