PIA’s privatization delayed until September

The ongoing privatization of state-owned Pakistan International Airlines (PIA) has been delayed by another two months and was now expected to be completed in September, reported 24NewsHD TV channel on Tuesday.

Sources told 24News that the bidding had to be postponed after the release of a new audit report and the bidders seeking more time for the submission of a business model.

They disclosed that the bidders wanted an explanation for the ban imposed on the national flag carrier’s flights to different destinations in Europe, including the UK.

Apart from that, sources revealed, the bidders also wanted to study in detail the agreements signed to give the PIA’s planes on lease.

It had earlier been reported that the government wanted to complete the entity’s privatization by August 14.

So far six business groups have shown their interest in buying the airline.

The National Assembly’s (NA) Standing Committee on Privatization was told on Monday that the financial adviser had suggested the sale of 51 per cent to 100 per cent shares in the Pakistan International Airlines (PIA), whose privatization had started on June 7, 2024.

In a briefing given to the committee, which met in Islamabad with Dr. Farooq Sattar in the chair, it was informed that it was the federal cabinet, which would finally decide how many shares of the airline would be sold.

It was also told that on July 1 meetings were held with six parties for bidding and that after the privatization, parties would spend an amount ranging between $400 million and $500 million on the national flag carrier since the government did not have that much amount.  

Reporter: Saeed Ahmad