The Privatization Commission of Pakistan has announced that the auction for Pakistan International Airlines (PIA) will take place on October 1. This decision follows a recent meeting focused on the airline’s privatization process. Six bidders have been pre-qualified for the auction, including Fly Jinnah, a consortium led by YB Holdings, Air Blue Limited, a consortium led by Pak Ethanol, Arif Habib Corporation, and Blue World City. To facilitate the auction, the commission plans to adjust the bidding rules. PIA is currently burdened with a debt of approximately Rs800 billion ($2.9 billion) and has received multiple government bailout packages in recent years.

The privatisation process was initially intended to conclude by August 14 but was delayed as bidders requested updated financial information and details regarding aircraft lease agreements, especially concerning flights to Europe that have been suspended for nearly four years. This move towards privatisation aligns with recommendations from the International Monetary Fund (IMF) to sell loss-making state-owned enterprises to bolster the economy. Officials are also exploring the possibility of resuming PIA’s flights to Europe, which were halted following a tragic plane crash in Karachi in 2020 that raised safety concerns.

Credit: Independent News Pakistan