Privatisation Minister Abdul Aleem Khan on Thursday claimed that the federal government would complete the privatisation process of Pakistan International Airlines (PIA) within a span of three months.
In a statement, the privatisation minister said: “All concerns of the parties interested in the process of privatisation of the airline have been addressed properly.”
He said that the government decided to make changes according to the preferences of parties interested in buying PIA stake.
“To make PIA’s privatisation more attractive, a new roadmap is being provided, and it is expected that all stages of this privatisation process will be completed within the next three months,” he added.
The minister emphasised that there is an expectation of better expressions of interest from investors this time around, as the introduction of PIA flights to Europe has made the privatisation environment more lucrative and favourable.
“Due to recent measures, the national airline is ready to become profitable again,” he added. Abdul Aleem further shared that after Europe, flights to the UK would begin within the next three months.
He highlighted that PIA is the first choice for travel for the 240 million Pakistanis. Following Europe and the UK, flights to the United States and the far East will be functional in the next phase, the minister mentioned.
The privatisation minister assured that with positive steps, PIA’s credibility be restored and the airline would be brought back to its peak.
He also asserted that there was no doubt that PIA still possesses the potential to become profitable once again. The minister expressed hope that this time, the privatisation process would be better and more feasible which would positively impact the overall privatisation process, as well.
The government is set to invite expressions of interest (EoIs) for the privatisation of PIA in March, aiming to transfer the airline to private hands before the fiscal year ends, The News reported quoting an official of the privatisation commission in
The previous attempt to privatise PIA faltered due to investor concerns, but key hurdles have now been cleared, the official added.
The International Monetary Fund (IMF) has approved a waiver on the 18% general sales tax for new aircraft purchases and allowed the government to absorb PIA’s Rs45 billion negative equity, according to the report published in February.
During a meeting of the National Assembly’s Standing Committee on Privatisation chaired by MNA Farooq Sattar, Secretary Usman Bajwa briefed lawmakers on the ongoing process and disclosed that $4.3 million of the $6.8 million advisory fee to Ernst & Young had already been paid.
The committee was also informed about PIA’s real estate holdings, including 26 properties under PIA Holdings and five under the airline itself. A prime plot in Islamabad’s Blue Area, valued at Rs10-12 billion, remains under review. Additionally, PIA Holdings possesses seven overseas properties, including Scribe Hotel in Paris and Roosevelt Hotel in New York, which are categorised as commercial properties. The Roosevelt Hotel’s current lease agreement will expire in May, and the process of vacating the property will commence with a three-month notice period.