A Canadian business group led by a Pakistani expat has offered the Pakistan government around Rs100 billion ($358 million) to acquire the Pakistan International Airlines (PIA).
A letter written by Al-Nihang’s CEO Faqir Muhammad M Ali reads, “I am writing to formally present an offer to acquire PIA at a valuation of PKR 100 billion in recognition of its invaluable role as Pakistan’s national carrier.”
“Al-Nihang’s Group will acquire the full shareholding of PIA in accordance with the terms outlined in the tender proposal, assuming comprehensive ownership.”
Pakistan was looking to offload a 51-100 percent stake in debt-ridden PIA to raise funds and reform state-owned enterprises as envisaged under a $7 billion International Monetary Fund program. The process, however, hit a snag last month when the final bidding round attracted just one bid of Rs10 billion ($36 million) for a 60 percent stake in the national flag carrier.
The offer letter by the Al-Nihang’s Group, dated Nov. 3, has been sent to the ministries of aviation, defense and privatization as well as the Establishment Division and the Planning Commission.
Among proposed acquisition conditions, the group will be responsible for PIA’s existing liabilities, amounting to approximately Rs250 billion ($896 million), and ensure all outstanding payments. It would also retain all current PIA employees for a period of 2-3 years and commit to continue paying salaries and benefits.
There has been no comment as yet from Pakistani authorities regarding the offer.
Little information could be found online about Al-Nihang’s group, but the website of the group’s CEO said he served as a magistrate in Jhang from 1992 to 1994, and was the youngest nominated senator in 1996. Since then, he has worked in the UK and Canada, where he helped negotiate an airline treaty between Pakistan and Canada and also served as the president of the Pakistan Canada Association of Hamilton, according to the website.