Islamabad:
The renewed government impulse to privatize the international airlines of Pakistan (PIA) has attracted the interest of eight parts, with five that formally present documents prior to the qualification before the deadline of Thursday, confirmed the privatization commission.
Among which will present the documentation is a consortium that includes Lucky Cement, Hub Power Company, Kohat Cement and Metro Ventures.
A separate group that includes Arif Habib Corporation, Fatima Fertilizer, City School and Lake City Holdings has also expressed interest in acquiring majority participation in the national carrier that makes losses.
Airblue and Fauji Fertilizer Company have presented their documents independently, while expressions of interest were also received from Augment Securities, Serene Air, Bahria Foundation, Mega Holdings and Equitas, which have indicated the joint intention of participating.
Read more: Deadline for offering for pia extended until June 19
Of the eight stakeholders, five complied with the deadline for the presentation of June 19 for prequalification. Now these entities will be given access to a virtual data room as part of the next phase of due diligence. The commission said that all presentations will be evaluated against predefined eligibility and financial criteria.
The due diligence of the purchase has already begun, with optimistic officials that the process can attract credible bidders in contrast to previous attempts.
This marks the second attempt of the government to privatize PIA after an offer failed last year. A 2024 auction had attracted only one offer: RS10 billion ($ 36 million) of the real estate developer Blue World City for a 60 percent participation. The offer fell well below the floor price of the Government of RS85 billion ($ 305 million) and was subsequently rejected.
Read too: The Government squeezes Pia’s bidding terms
This year, the Privatization Commission reopened the process in April, inviting the expressions of interest of national and international investors for a majority participation that varies from 51 to 100 percent in PIA. The initial deadline of June 3, 2025 was extended later until June 19 to accommodate possible buyers.
In an effort to ensure that the financially viable parties advance, the Government introduced more strict qualification criteria for this round and explicitly prohibited provincial governments from participating in the tender.
PIA is expected to be the first important privatization of Pakistan in almost two decades. Relivating state companies that make losses such as PIA is a key structural reference point under the rescue program of $ 7 billion from the country with the International Monetary Fund (IMF).
