The government has announced a two-week extension for submitting Expressions of Interest (EOIs) in the privatisation of Pakistan International Airlines (PIA). The new deadline is now June 19, according to the Ministry of Privatisation’s statement on Tuesday.
The extension aims to account for the Eidul Adha holidays and the recent political and military tensions between Pakistan and India, an official said.
This decision is part of Pakistan’s ongoing efforts to privatise the heavily indebted national airline to generate funds and improve the management of state-owned enterprises, aligning with the country’s commitments to the International Monetary Fund (IMF) under a $7 billion programme.
Originally, the deadline for submitting EOIs was June 3, and while the deadline has shifted, all other terms and conditions remain unchanged.
Read more: Govt tightens PIA bidding terms
Pakistan plans to sell between 51% and 100% of its stake in PIA to address its financial crisis. However, previous privatisation attempts have encountered obstacles.
In the final bidding round last October, only one bid was received — $36 million for a 60% stake — far below the government’s minimum price of $303 million.
Concerns over policy continuity, inconsistent government communication, and unfavourable aviation sector conditions have deterred potential bidders.
PIA’s privatisation has been under scrutiny for years, compounded by the airline’s operational setbacks, including a 2020 EU ban linked to pilot licensing safety concerns.
Despite these hurdles, the government remains determined to privatise PIA and other struggling state-run enterprises to ease the financial strain on public coffers.
