KARACHI: The privatization of Pakistan International Airlines (PIA) has gained traction, with leading business groups expressing keen interest in acquiring the national carrier, ARY News reported on Friday.
Potential Investors and Key Meetings
According to sources, prominent business entities, including Arif Habib Group, Taba Group, and YB Holdings, are considering the acquisition of PIA. Representatives from these groups have held key discussions in Islamabad, signaling their willingness to proceed with the deal—provided certain conditions are met.
Investor Conditions for Acquisition
One of the primary conditions set by interested buyers is that the government absorbs PIA’s outstanding liabilities, which include substantial dues owed to the Federal Board of Revenue (FBR), Pakistan State Oil (PSO), and the aviation sector.
IMF’s Role and Privatization Deadline
Reports suggest that the International Monetary Fund (IMF) has set a July deadline for the completion of PIA’s privatization. The move is part of broader economic reforms aimed at addressing financial losses and improving the airline’s operational efficiency.
The government is actively working with international financial institutions, including the World Bank, to ensure a successful privatization process, which is expected to reduce PIA’s financial burden and enhance its performance.
Previous Privatization Efforts
Earlier in 2024, the privatization of PIA was debated in the National Assembly, where former Commerce Minister Naveed Qamar raised concerns about the planning and execution of the initiative. Law Minister Azam Nazeer Tarar expressed confidence in securing better bids in the second attempt, particularly after the restoration of PIA’s European flight routes, which is expected to attract higher offers.
