Prime Minister Shehbaz Sharif on Friday directed officials to ensure complete transparency in the ongoing privatisation of Pakistan International Airlines (PIA), calling for the process to be completed within the stipulated timeframe.
The directive came a day after the government reopened the privatisation process, offering enhanced incentives to potential buyers. Investors now have until June 3 to submit expressions of interest, with bidding scheduled to occur between October and December. The government is offering between 51% and 100% ownership in PIA, including management control.
Chairing a high-level meeting to review the progress, the prime minister stressed that openness must be a cornerstone of the process.
“To guarantee transparency, the privatisation of PIA—as well as all future privatisation of state-owned entities—should be broadcast live on television and digital platforms,” PM Shehbaz stated. He also emphasised the importance of investor roadshows and proactive engagement with potential stakeholders.
Officials briefed the prime minister on the bidding criteria, the timeline for the process, and conditions for participation. It was also noted that a comprehensive investor outreach strategy, developed in partnership with consultants, was now being actively implemented.
Earlier in March, Privatisation and Investment Minister Abdul Aleem Khan announced that the government aimed to complete the PIA privatisation process by May, in line with reform commitments made to the International Monetary Fund (IMF).
In April, the Privatisation Commission reaffirmed this effort, offering a 51–100% stake in the airline, which is burdened with liabilities running into hundreds of billions of rupees. The commission had set May 3, 2024, as the deadline for receiving statements of interest and had appointed EY Consulting as the deal’s financial advisor.
However, the first round stalled when the only bid, worth Rs10 billion from the Blue World City consortium, fell Rs75 billion short of the government’s valuation.
This failed attempt cost the national treasury $4.3 million, as disclosed during a National Assembly Standing Committee on Privatisation meeting in February. According to Secretary Privatisation Jawad Paul, this sum represented 63% of the $6.8 million agreed fee payable to Ernst & Young (E&Y), the financial adviser for the initial effort.
