The Government has extended the deadline to present expressions of interest (EOI) in the purchase of Pakistan International Airlines (PIA) to June 19, the Privatization Ministry announced Tuesday.
The extension follows the need to accommodate Eidul Adha’s holidays and the recent political and military tensions, including Pakistan-India conflict, said an official.
The measure occurs when Pakistan continues its efforts to privatize the national operator full of debts to raise funds and rationalize state companies, as part of the country’s agreement with the International Monetary Fund (IMF) under a $ 7 billion program.
The original deadline for the presentation of EOI was June 3. The Ministry confirmed that all other terms and conditions would remain unchanged.
Read more: The Government squeezes Pia’s bidding terms
In an attempt to address its financial crisis, Pakistan is looking to sell a 51 to 100 percent participation in Pia. However, the past attempts to privatize the operator have faced challenges.
In the final round of the offer last October, only one offer was presented, an offer of $ 36 million for a 60 percent share, well below the minimum government price of $ 303 million.
Bidders have cited concerns about the continuity of politics, the communication of the inconsistent government and the unfavorable terms in the aviation sector as significant obstacles.
The privatization of PIA has been under pressure for several years, with the operations of the airline affected by an EU prohibition of 2020 about the security concerns related to the irregularities of pilot licenses.
Despite these challenges, the government is still committed to privatize PIA, along with other public entities that make losses, to reduce financial burden in the national treasure.
