Federal Minister for Privatization Abdul Aleem Khan has said that the government will complete all steps for the privatization of Pakistan International Airlines (PIA) in the next 3 months. Under the reform agenda of the International Monetary Fund (IMF), the Privatization Commission had said in April 2024 that a bid would be made for the sale of 51 percent to 100 percent shares of the national airline.
The National Assembly’s Standing Committee on Privatization was informed on February 26 that the government’s first failed attempt to privatize PIA had cost the national exchequer $4.3 million. The committee was told that there were several reasons for the lack of interest from buyers in the first phase of privatization, including the 18 percent general sales tax on the purchase of new aircraft and the national airline’s dues.
In a press release issued by the Ministry of Privatization, the Federal Minister said that a new roadmap is being provided to make the privatization of PIA more attractive, and it is expected that all the stages of this privatization process will be completed in the next 3 months.
He said that all the concerns of the interested parties in the privatization process of PIA have been removed, while the government has decided to make changes according to the preferences of the interested parties for the privatization of PIA.
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The Federal Minister said that there is no doubt that PIA has the potential to become profitable, and it is hoped that the privatization process will be further improved, which will have a positive impact on the overall process. He said that this time, more interest is expected from investors as the launch of PIA flights to Europe has made the privatization environment more conducive.
The Federal Minister said that after Europe, flights to the UK will start in the next 3 months, and after Europe and the UK, flights to the US will be operational in the next phase. He said that PIA’s reputation will be restored, and the airline will be brought back to its peak with positive steps. There is no doubt that PIA still has the potential to become profitable once again.
