KARACHI: The privatisation ministry has stated Wednesday (16th April, 2025) that “a fresh advertisement for the expression of interest for the demerger of PIACL is planned to be published next week”.
Following a huddle of the Privatisation Commission the board approved pre-qualification criteria for selection of potential bidders for privatisation of 51% to 100% shares of PIACL.
It is pertinent to mention here that the bids received in the first attempt was ridiculously low. The sole bidder Blue World City* (a real-estate development company – with no experience of running an airline) offered Rs. 10 billion for 60% stake in PIA on 31st October, 2024, though GoP had set a minimum price of Rs. 85 billion.
The consortium had been given time to review the bid, savants at the helm of affairs were of the view that due to illogical prerequisites (such as condition of not sacking the redundant staff etc) genuine bidders distanced themselves from the process.
Though six bidders (Fly Jinnah, a consortium led by YB Holdings (Pvt) Ltd, Airblue Ltd, a consortium led by Pak Ethanol (Pvt) Ltd, Arif Habib Corporation Ltd, and Blue World City) qualified, only Blue World City submitted the earnest in order to participate in the process.
Blue World City also confirmed that only it had submitted the earnest money. The successful bidder was supposed to be eligible to acquire management control and between 51% to 100% share capital.
It may be recalled that following a meeting of Privatisation Commission Board of Pakistan held on 20th September, 2024 it was announced that PIA would be auctioned on 1st October, 2024.
PIA, that is surviving only because of repeated bailout packages provided by the government, yet had to repay a debt of $2.9 billion.
Earlier, Secretary of the Privatisation Commission too had told the Senate Standing Committee that denationalisation of PIA process would be completed by 1st October, 2024.
PIA’s BoD during its 83rd meeting held on 26th March, had approved the privatization and restructuring plan of Pakistan’s National Flag Carrier.
Caretaker government had engaged a global financial advisory firm Ernst & Young that managed to prepare a plan apropos PIA. Moreover, IMF too had advised Pakistan to get rid of loss-making entities enabling the bleeding economy to revive.
*Real-Estate Developers Blue World City has a consortium that includes Blue World Aviation and IRIS Communication Limited.
Newspakistan.tv
