Pakistan to sell loss-making PIA for IMF loans

Pakistan is set to hold the bidding to sell the state-owned airline after last year's failed attempt to offload it, state media reported on Wednesday. The Pakistan government is trying to sell loss-making Pakistan International Airlines (PIA) as envisaged under a USD 7 billion International Monetary Fund (IMF) programme. Fed up with the piling up losses, the government last year made a determined bid to sell it, but it could not get an attractive offer and cancelled the plan.

Prime Minister Shehbaz Sharif held a meeting with all corporate entities and company representatives participating in the privatisation process of the national airline, according to a press release posted on X by state broadcaster PTV News. “PIA’s bidding will take place on December 23, which will be broadcast live on all media,” it quoted the prime minister as saying. He said the process was proceeding smoothly to restore the national carrier’s “lost prestige” and align it with modern requirements. “We are ensuring transparency and merit in the privatisation process of PIA,” he was quoted as saying.

Sharif said the restoration of PIA’s flights worldwide would provide convenience to overseas Pakistanis, stressing that aligning it with modern requirements was “extremely essential” for the tourism sector’s development. It would be the country’s first major privatisation in nearly two decades.

Among the four companies that have pre-qualified for the bidding is Fauji Fertiliser Company Limited, part of the military-controlled Fauji Foundation.The divestment of 51-100% in the struggling PIA is part of conditions set by the IMF for a $7-billion economic package, according to the Dawn. The sale of PIA is a key condition for the IMF's bailout package, reported Geo TV. "Four bidders have been pre-qualified for the sale: Lucky Cement Consortium, Arif Habib Corporation Consortium, Fauji Fertiliser Company Limited and Air Blue Limited," it reported.