Pakistan steps up efforts to sell cash-strapped PIA; approves four interested parties: Report
Out of five prospective investors who submitted Statements of Qualification (SOQs), one did not qualify for bidding.
- Jul 9, 2025,
- Updated Jul 9, 2025 1:09 PM IST
Pakistan's government is intensifying efforts to sell Pakistan International Airlines (PIA) by the end of 2025, following an unsuccessful attempt last year to privatise the loss-making national carrier, according to a report.
Pakistani newspaper The Express Tribune reported that the Privatisation Commission board on Tuesday approved four local parties, including three linked to the cement industry, as eligible bidders for acquiring the airline. In the previous bid, the government set a minimum price of Pakistan 85.03 billion rupees, factoring in a Pakistan 45 billion rupees negative balance sheet, but only received an offer of Pakistan 10 billion rupees.
The board, chaired by Adviser to the Prime Minister on Privatisation, Muhammad Ali, approved the pre-qualification of four parties for the divestment of Pakistan International Airlines Corporation Limited (PIACL), according to a press statement.
Out of five prospective investors who submitted Statements of Qualification (SOQs), one did not qualify for bidding. The pre-qualified parties will now move to the buy-side due diligence phase, a key step in the transparent and competitive privatisation process. PIA's bidding process is expected to take place in the last quarter of this year, Muhammad Ali said, as per the report.
The government aims to sell majority shares in PIA along with management control. It has also reduced the airline's debt, which should positively affect the minimum price. Additionally, the ban on PIA's operations in the European Union has been lifted.
The report added that PIA has been facing financial difficulties for many years. In 2023, the crisis became evident when 7,000 employees did not receive their salaries for November. The European Union had previously banned PIA in 2020 over safety concerns.
Pakistan's government is intensifying efforts to sell Pakistan International Airlines (PIA) by the end of 2025, following an unsuccessful attempt last year to privatise the loss-making national carrier, according to a report.
Pakistani newspaper The Express Tribune reported that the Privatisation Commission board on Tuesday approved four local parties, including three linked to the cement industry, as eligible bidders for acquiring the airline. In the previous bid, the government set a minimum price of Pakistan 85.03 billion rupees, factoring in a Pakistan 45 billion rupees negative balance sheet, but only received an offer of Pakistan 10 billion rupees.
The board, chaired by Adviser to the Prime Minister on Privatisation, Muhammad Ali, approved the pre-qualification of four parties for the divestment of Pakistan International Airlines Corporation Limited (PIACL), according to a press statement.
Out of five prospective investors who submitted Statements of Qualification (SOQs), one did not qualify for bidding. The pre-qualified parties will now move to the buy-side due diligence phase, a key step in the transparent and competitive privatisation process. PIA's bidding process is expected to take place in the last quarter of this year, Muhammad Ali said, as per the report.
The government aims to sell majority shares in PIA along with management control. It has also reduced the airline's debt, which should positively affect the minimum price. Additionally, the ban on PIA's operations in the European Union has been lifted.
The report added that PIA has been facing financial difficulties for many years. In 2023, the crisis became evident when 7,000 employees did not receive their salaries for November. The European Union had previously banned PIA in 2020 over safety concerns.