Privatization Minister Abdul Aleem Khan announced Thursday that the privatization of the National Losses airline, Pakistan International Airlines (PIA), will be completed within three months.
“The Federal Minister also mentioned that in order for PIA privatization to be more attractive, a new road map is provided and all stages of this privatization process are expected to be completed within the next three months,” Khan’s office said in a statement.
The minister declared that with the introduction of PIA flights to Europe, the privatization process has become more attractive to investors.
Khan expressed his confidence that this time there would be a greater interest of possible investors. “The national airline is about to become profitable again due to recent reforms,” the statement added.
In the last bidding process for the privatization of PIA held in October 2024, only an offer, $ 36 million for a 60 percent participation was received, well below the minimum price of the RS85 billion government.
Although six groups were prequalified for the tender, the only participant was Blue World City, a real estate development firm.
Potential bidders have raised concerns regarding the continuity of politics, in honor of contracts, inconsistent government communication, unattractive terms, taxes on the sector and the problems inherited from PIA.
It is estimated that the accumulated losses of the airline are close to $ 3 billion, while its total assets of assets is approximately $ 572 million.
Khan also revealed that PIA flights to the United Kingdom would begin in three months, further promoting the airline’s prospects. PIA resumed operations in Europe last year after the European Union Aviation Security Agency (EASA) raised its 2020 prohibition at the airline.
The prohibition had imposed on the concerns of the security of the pilots’s licenses and the ability of the Pakistan Civil Aviation Authority (PCAA) to comply with international aviation standards.
After a deadly plane crash in 2020 that killed 97 people, both the authorities of EASA and the United Kingdom suspended PIA operational permits.
“The Privatization Minister emphasized that there is an expectation of better expressions of interest of investors this time, since the introduction of PIA flights to Europe has made the privatization environment even more lucrative and favorable,” the statement said. “Due to recent measures, the national airline is ready to become profitable again.”
