The government has officially set October 30, 2024, as the date for the final auction of Pakistan International Airlines (PIA), following several delays. This announcement came on Wednesday during the seventh session of the National Assembly.
Auction Delayed Due to Low Bidder Interest
Initially, the privatisation process was scheduled to conclude on October 1, 2024. However, it faced delays due to a lack of bidder interest and unresolved internal issues within PIA. According to Parliamentary Secretary for Communication Gul Asghar Khan, challenges such as legal disputes, an ageing fleet, and civil aviation concerns contributed to the postponement.
During the National Assembly session, Khan responded to concerns raised by Pakistan Peoples Party (PPP) MNA Sharmila Faruqui. He provided a detailed overview of the privatisation process and explained why the auction had to be rescheduled.
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PIA’s Privatisation Process Underway Since February 2024
The privatisation journey for PIA began in February 2024. Despite the delays, Khan assured lawmakers that the process is now back on track. The final auction, which is expected to bring an end to the airline’s privatisation, will occur on October 30.
Khan explained that the privatisation is being conducted under the supervision of the Privatisation Commission Board. The board is chaired by the minister, with Secretary Usman Bajwa playing a pivotal role in managing the auction and ensuring transparency throughout the process.
Key Challenges in PIA’s Privatisation
The delay in the auction was largely due to unresolved legal and operational issues surrounding PIA. The airline, which has struggled with profitability for years, has been burdened by an ageing fleet and significant civil aviation concerns. These challenges made it difficult for the government to attract serious bidders in the initial phase.
However, Khan noted that these hurdles have been addressed in recent months. The government’s efforts have now created a clearer path for the privatisation process to move forward. He also emphasized that PIA’s operational assets have been separated from the main entity to streamline the auction process and make the airline more attractive to potential buyers.
Final Bid Documents Shared with Six Consortia
Last month, Secretary Usman Bajwa updated the National Assembly’s Standing Committee on Privatisation regarding the status of the auction. He confirmed that final bid documents had been shared with six pre-qualified consortia. These consortia are competing for a 60% stake in the national airline.
The list of potential bidders includes prominent names such as Fly Jinnah Limited, Air Blue Limited, and Arif Habib Corporation Limited. Other contenders include consortia led by YB Holdings (Private) Limited, Pak Ethanol, and Blue World City.
Privatisation Process Nearing Conclusion
The Cabinet Committee on Privatisation has approved the privatisation plan, with the final auction marking a significant step in the government’s efforts to privatise PIA. The process is expected to conclude at the end of this month with the successful bidder acquiring a majority stake in the airline.
PIA’s Future in Focus
With the final auction date set and key challenges addressed, PIA’s privatisation is nearing its final stages. The government hopes that this auction will bring new investment and management expertise to the airline, positioning PIA for a more stable and profitable future.
The auction on October 30 is expected to be closely watched. For now, the government remains focused on ensuring a smooth and transparent conclusion to PIA’s privatisation process.
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