- Four consortia begin late-stage talks on the sale of PIA.
- The cabinet is expected to approve the PIA reserve price soon.
- The panel recommends five years’ job security for PIA staff.
The government plans to hold the final tender for Pakistan International Airlines (PIA) in mid-December, the secretary of the Privatization Division told the standing committee of the National Assembly on Wednesday.
Briefing the panel chaired by MNA Farooq Sattar, the secretary said four pre-qualified consortia are currently in the final stage of negotiations on trade terms. The news reported.
He said talks are underway with pre-qualified bidders regarding share purchases and shareholder agreements. Pre-bid qualification talks have continued for the past three days, while approval of the reserve price will be sought from the federal cabinet, the secretary said.
Earlier in July, the Privatization Commission Board pre-qualified four bidders: Fauji Fertilizer Company Ltd, Air Blue (Pvt) Ltd, a consortium of Lucky Cement, Hub Power Holdings, Kohat Cement and Metro Ventures, and a consortium led by Arif Habib Corporation with Fatima Fertiliser, City Schools and Lake City Holdings. On November 7, the board approved the inclusion of AKD Group Holdings (Pvt) Ltd in the Arif Habib-led consortium.
During the meeting, Farooq Sattar pressed the government to ensure strong job protection for airline employees and transparency in the sales process. Notably, the previous reserve price for PIA was set at Rs 85 billion. “The airline must be sold, but the protection of employees must be guaranteed,” he said.
The committee recommended at least five years of job protection for PIA employees and full safeguards for pensioners.
Officials said PIA currently operates 18 aircraft and will need 35 to 38 more for sustainable operations, and future owners will need to hire experienced staff.
The undersecretary of the Energy Division revealed for the first time to lawmakers that the government is considering transferring the DISCOs under long-term concession agreements instead of full privatization, following the Turkish model.
These agreements would entrust management responsibilities to private entities for a potential period of up to 25 years, allowing for infrastructure investments and improvements.
In the first phase, the government plans to privatize power utilities in Islamabad, Gujranwala and Faisalabad, but the issuance of their RFPs has been delayed and officials say the process should reach an advanced stage by March.
The Energy Division told the committee that all three-phase meters across the country will be replaced with AMI meters by December 2026 to curb electricity theft. He said 1.5 million AMI meters have been installed in the Iesco region, reducing power losses by 2%.
Addressing the 33-year delay in privatization of Pakistan Engineering Company (Peco), Farooq Sattar asked why it remained stalled. Officials said the prime minister placed Peco under the Special Investment Facilitation Council (SIFC).
The committee led a formal progress report from the SIFC, while the Privatization Division said it responds to council queries rather than initiating them. The committee was also briefed on the privatization of the Roosevelt Hotel in New York. On the other hand, officials from the Ministry of Industry and Production confirmed that all outstanding fees of the employees of the Public Service Stores have been settled.
