PIA Privatisation Nears Completion as Government Pushes for Final Deal

>Pakistan International Airlines’ (PIA) privatisation process has entered an advanced phase, with authorities aiming to complete the deal within the next two to three months. According to government officials, four bidders have been shortlisted after scrutiny and have begun due diligence to assess the airline’s financials and operations.

Four Bidders Cleared for Due Diligence

Out of five submitted expressions of interest (EOIs), four have been approved by the scrutiny committee. These parties now have access to PIA’s internal data and accounts. The final bidder will be required to significantly expand the airline’s fleet—from the current 19 aircraft to at least 45—as part of the agreement.

Roosevelt Hotel Bidding Next

In addition to PIA’s sale, the federal government plans to invite EOIs in August for the Roosevelt Hotel in New York. The transaction structure is currently being developed by a financial adviser.

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Focus on Employee Protection

Privatisation Commission Secretary Usman Bajwa briefed the National Assembly’s Standing Committee on Privatisation, chaired by MNA Dr Farooq Sattar. Lawmakers stressed the importance of employee security. They proposed a three-to-five-year employment guarantee for PIA staff. Bajwa assured that employee welfare would be protected and confirmed that the workforce has already been reduced from 11,000 to 6,000.

Local and Regional Interest Grows

Bajwa revealed that prominent Pakistani business groups have shown strong interest in PIA. The government has also invited regional airlines to take part in the bidding process, hoping to attract both capital and technical expertise.

Operations Slowly Recovering

PIA’s CEO updated the committee on operational progress. The airline has resumed flights to France and plans to restore services to Manchester soon. He claimed overall performance has improved compared to last year.

Other Issues Discussed

The committee also reviewed pending insurance claims at Pakistan Postal Life Insurance. Officials stated Rs3 billion is already available, while members urged the release of the full Rs6 billion. Additionally, MNA Farooq Sattar called for the auction of abandoned Bengali evacuee properties, criticizing the government for collecting rent without action.