In order to offload PIA’s 51 percent shares, the Privatization Commission has invited bids from interested parties till May 3, reported 24NewsHD TV channel on Tuesday.
Before privatization, however, all the losses and the debts of the Pakistan International Airlines (PIA) will be transferred to the holding company
The Ministry of Privatization initiated the process of seeking bids from potential buyers for the selling off of the national carrier by the deadline of May 3rd.
The federal government wanted to take only the aviation sector of the PIA into private custody.
As many as 51 percent shares of the PIA will be given in private custody, while 49 percent shares will be owned by the Government of Pakistan. By giving away the majority shares, the management control will also be given to the successful bidder.
According to the Privatization Commission, the potential investors are asked to submit their bids by May 3.
It will be interesting to see how many parties take part in the bidding process and whether the potential investors would be local or foreigner.
It is pertinent to mention that last week, the government reached a deal with the commercial banks from which the national carrier obtained a massive loan of around Rs270 billion.
Obviously, an effective privatisation transaction requires a roadmap on how the new controlling authority will deal with the PIA’s financial obligations that IMF thinks must be disposed of to stop draining the government resources as Pakistan needs to reduce the widening budget deficit.
Reporter: Saeed Ahmed Saeed