Pakistan to Invite Bids for National Airline Sale Next Week
Deal News | Apr 17, 2025 | Zawya
The Pakistani government is set to invite expressions of interest next week for the privatisation of Pakistan International Airlines (PIA), seeking to offload between 51% to 100% of the carrier. This initiative aims to reform and raise funds for debt-laden state-owned enterprises under a $7 billion IMF program. A previous attempt to sell PIA last year resulted in a sole bid falling short of the $300 million asking price. The privatization commission has now approved new pre-qualification criteria for bidders, addressing issues from the previous failed attempt. The government has moved the airline's legacy debt to its books to make PIA more attractive to potential buyers. According to Muhammad Ali, a government adviser, all issues highlighted during the last bidding have been resolved.
Sectors
- Aviation
- Public Sector
- Financial Services
Geography
- Pakistan – The actions regarding the sale and privatisation are being carried out by the Pakistani government concerning the Pakistani state-owned enterprise.
- International – The potential buyers of the airline stake could come from international markets, reflecting the global aspect of the sale process.
Industry
- Aviation – As the article deals with the potential sale and privatization efforts of Pakistan International Airlines, the aviation sector is particularly relevant.
- Public Sector – The involvement of the Pakistani government and the privatisation ministry in efforts to privatise a state-owned enterprise places this within the public sector.
- Financial Services – The potential sale is linked to financial restructuring as part of an IMF program, focusing on the refinancing and debt management aspects.
Financials
- $300 million – The previous asking price for Pakistan International Airlines that failed to receive adequate bids.
- $7 billion – The sum associated with the IMF program supporting Pakistan's economic reforms, including the PIA sale.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Pakistan International Airlines | Target Company | Company | Pakistan's national airline, subject to privatisation efforts. |
| Pakistani Government | Selling Company | Government | The owner of the state-owned enterprise looking to privatize the airline. |
| Privatisation Ministry | Government Body Overseeing Sale | Government | The ministry handling the privatisation process as part of larger economic reform efforts. |
| International Monetary Fund | Financial Supporter | Government | The IMF program supports Pakistan in reforming state enterprises, including this privatization effort. |
| Muhammad Ali | Government Adviser on Privatisation | Person | Advises the Pakistani government on privatisation practices. |