PIA: To privatise or not to privatise?

[Cricket Warrior]

PIA privatization gains momentum as major investors show interest

The process for Pakistan International Airlines (PIA) privatization has accelerated once again, with significant interest shown by prominent groups for the acquisition of PIA, ARY News reported on Friday citing sources

According to sources interested groups’ names include the Arif Habib Group, Taba Group, and YB Holdings. Key meetings have reportedly taken place in Islamabad among representatives of these groups to discuss the potential acquisition of PIA.

Sources indicate that, since the process for PIA privatization has gained momentum, the interested groups have expressed their willingness to proceed with the acquisition of Pakistan’s national airlines, provided their conditions are met.

Among these conditions is the demand that the government assumes responsibility for PIA’s outstanding liabilities, including billions owed to the Federal Board of Revenue (FBR), Pakistan State Oil (PSO), and the aviation sector.

Additionally, it has been reported that the International Monetary Fund (IMF) has set a target for PIA privatization to be completed by July.

This development comes as part of broader economic reforms and restructuring efforts aimed at improving the financial health of the national carrier.

The government is actively engaging with international financial institutions, including the World Bank, to ensure the success of the privatization process. This effort is seen as crucial for reducing financial losses and improving operational efficiency.

PIA privatization gains momentum as major investors show interest

KARACHI: The process for Pakistan International Airlines (PIA) privatization has accelerated once again, with significant interest shown by prominent

arynews.tv

 

[Cricket Warrior]

Transaction structure for PIA privatization approved

The Privatization Commission Board has approved the transaction structure for the second attempt to privatize Pakistan International Airlines Corporation Limited, ARY News reported citing official statement.

This decision was made during a meeting of the Privatization Commission Board, chaired by Muhammad Ali, the adviser to the prime minister on privatization.
The plan involves divesting 51% to 100% of PIACL’s share capital, along with management control.

The Ministry of Privatization in a statement said that “The board recommended to CCOP (Competition Commission of Pakistan) the transaction structure proposed for the 2nd attempt of PIACL privatization based on divestment of 51 percent to 100 percent share capital of PIACL together with the management control of PIACL”.

Additionally, the Privatization Commission Board discussed the privatization of Roosevelt Hotel in New York, and decided to seek a briefing from a financial advisor before moving forward with the process.

Transaction structure for PIA privatization approved

ISLAMABAD: The Privatization Commission Board has approved the transaction structure for the second attempt to privatize Pakistan International Airlines

arynews.tv

 

[Aang_The_last_airbender]

wow this thread is going to be 10 years old !!

 

[Cricket Warrior]

Federal govt approves PIA privatization

The federal government has decided to privatize Pakistan International Airlines (PIA), approving the sale of 51% to 100% of its shares, ARY News reported on Tuesday.

The decision was made during a meeting of the Cabinet Committee on Privatization, chaired by Deputy Prime Minister Ishaq Dar in Islamabad, here today.

According to Ishaq Dar, the privatization of PIA will reduce the financial burden on the national treasury. He emphasized that the government aims to unlock the full potential of the airline.

Following privatization, administrative control of PIA will also be transferred.

The deputy prime minister stated that the decision has been taken in the national interest to ensure the airline’s long-term sustainability.

Federal govt approves PIA privatization

The federal government has decided to privatize Pakistan International Airlines (PIA), approving the sale of 51% to 100% of its shares, ARY News reported

arynews.tv

 

[Cricket Warrior]

Pakistan to miss IMF deadline for PIA privatisation, says adviser

Pakistan will miss its July 2025 deadline set by the International Monetary Fund (IMF) for the privatisation of Pakistan International Airlines (PIA), ARY News reported on Friday.

Muhammad Ali, Adviser to the Prime Minister on Privatisation and Chairman of the Privatisation Commission, confirmed that the PIA privatisation process will not be completed within the IMF’s stipulated timeframe. He stated that the process is now expected to conclude by December 2025.

He revealed that a new Expression of Interest (EoI) will be published in the last week of April 2025, allowing prospective bidders to participate in the process.

The period, during which bidders will assess the airline’s assets and balance sheet, is scheduled for July, he said. He further noted that bid evaluations will continue through September.

Notably, Pakistan’s attempt to privatise PIA last year fell flat when it received only a single offer, well below the asking price of more than $300 million.

Pakistan to miss IMF deadline for PIA privatisation, says adviser

ISLAMABAD: Pakistan will miss its July 2025 deadline set by the International Monetary Fund (IMF) for the privatisation of Pakistan International Airlines

arynews.tv

 

[Cricket Warrior]

Govt to seek fresh bids for PIA next week: privatisation ministry

The government will publish an advertisement next week to attract new bidders for the privatisation of Pakistan International Airlines (PIA), the privatisation ministry said in a statement on Wednesday.

The government’s failed first attempt to privatise PIA cost the national exchequer $4.3 million, the National Assembly Standing Committee on Privatisation was informed on February 26.

Last month, Privatisation and Investment Minister Abdul Aleem Khan said that the government would complete all the steps to privatise PIA by May, while the privatisation commission approved a transaction structure for the second attempt to privatise the national carrier based on a divestment of 51 to 100 per cent of its shares of capital.

According to a statement from the ministry, the privatisation commission had a meeting today, chaired by Muhammad Ali, commission chairman and the Adviser to the Prime Minister on Privatisation.

“The Board approved the pre-qualification criteria for selection of potential bidders for privatisation of 51pc to 100pc shares of Pakistan International Airlines Corporation Limited (PIACL),” the statement read. “A fresh advertisement for [the] expression of interest for the demerger of PIACL is planned to be published next week.”

The statement added that the meeting will continue tomorrow “to consider the remaining items on the agenda”.

Earlier this month, a PIA spokesperson said that the carrier’s board of directors approved its financial results for 2024, which showed the airline achieving a net profit after around 21 years.

According to the results for FY2024, PIA earned an operational profit of Rs3.9 billion and a net profit of Rs2.26bn. The airline’s operating margin was more than 12pc, which is on a par with the performance of any of the best airlines in the world, the spokesperson said.

PIA began to be unprofitable in 2011, requiring government subsidies. By the end of 2016, the national flag carrier was saddled with $3bn in debt. At the end of 2018, the airline was burdened with $3.3bn in debt, up from $2.97bn the year before. Government bailouts were required for the carrier’s continued operation.

Last year in June, the then-government had agreed to overhaul loss-making state-owned enterprises, including PIA, under a deal with the International Monetary Fund (IMF) for a $3bn bailout. But in February 2024 — right before the general elections — the election commission had asked the then-caretaker administration to “refrain” from finalising the deal.

Govt to seek fresh bids for PIA next week: privatisation ministry

Crtieria for potential bidders approved, statement says.

www.dawn.com

 

[Cricket Warrior]

NA informed: PIA records Rs9.35bn operational profit

After years of financial freefall, the National Assembly was informed on Wednesday that Pakistan International Airlines (PIA) recorded an operational profit of Rs9.35 billion and a net profit of Rs26.20 billion – after deferred tax adjustments – for the 2024 financial year, marking a significant turnaround from persistent past losses.

In a written reply to questions asked by lawmakers, Defence Minister Khawaja Asif detailed the financial contours of PIA’s performance.

The airline, he said, spent Rs198.8 billion over the year, with fuel (Rs75.58 billion), aircraft maintenance (Rs17.48 billion), and landing and handling charges (Rs29.42 billion) comprising the lion’s share.

NA informed: PIA records Rs9.35bn operational profit

ISLAMABAD: After years of financial freefall, the National Assembly was informed on Wednesday that Pakistan...

www.brecorder.com

 

[finalfantasy7]

NA informed: PIA records Rs9.35bn operational profit

After years of financial freefall, the National Assembly was informed on Wednesday that Pakistan International Airlines (PIA) recorded an operational profit of Rs9.35 billion and a net profit of Rs26.20 billion – after deferred tax adjustments – for the 2024 financial year, marking a significant turnaround from persistent past losses.

In a written reply to questions asked by lawmakers, Defence Minister Khawaja Asif detailed the financial contours of PIA’s performance.

The airline, he said, spent Rs198.8 billion over the year, with fuel (Rs75.58 billion), aircraft maintenance (Rs17.48 billion), and landing and handling charges (Rs29.42 billion) comprising the lion’s share.

NA informed: PIA records Rs9.35bn operational profit

ISLAMABAD: After years of financial freefall, the National Assembly was informed on Wednesday that Pakistan...

www.brecorder.com

How much is that in profit

 

[Cricket Warrior]

Govt extends PIA privatisation deadline by two weeks

The governemnt has extended the deadline for submitting Expressions of Interest (EOI) in purchasing Pakistan International Airlines (PIA) to June 19, the Ministry of Privatisation announced on Tuesday.

The extension follows a need to accommodate the Eidul Adha holiday and the recent political and military tensions, including the Pakistan-India conflict, an official said.

The move comes as Pakistan continues its efforts to privatise the debt-ridden national carrier to raise funds and streamline state-owned enterprises, as part of the country’s agreement with the International Monetary Fund (IMF) under a $7 billion programme.

The original deadline for the submission of EOI was June 3. The ministry confirmed that all other terms and conditions would remain unchanged.

Govt extends PIA privatisation deadline by two weeks | The Express Tribune

The extension accommodates the Eidul Adha holiday and the recent Pakistan-India conflict

tribune.com.pk

 

[Cricket Warrior]

Govt draws five potential buyers for PIA

In its efforts to sell its struggling flag carrier Pakistan International Airlines (PIA), the government has received expressions of interest from five parties, including business groups and a military-owned firm, the Privatisation Ministry said on Thursday.

The bids were submitted ahead of a June 19 deadline to acquire up to 100 per cent of PIA, which has accumulated over $2.5 billion in losses in roughly a decade. Still, following major restructuring, it posted its first operating profit in 21 years in the 2024-25 fiscal year.

The sale is seen as a test of Pakistan’s ability to shed loss-making state firms and meet conditions of a $7bn International Monetary Fund bailout. It would be the first major privatisation in nearly two decades.

Eight parties submitted their expression of interest, but only five of them provided documents of qualification, the ministry said in a statement.

Among the five groups is a consortium of major industrial firms: Lucky Cement Ltd, Hub Power Holdings Ltd, Kohat Cement Co Ltd and Metro Ventures.

Another is led by investment firm Arif Habib Corp Ltd and includes fertiliser producer Fatima Fertiliser Co Ltd, private education operator The City School, and real estate firm Lake City Holdings.

Fauji Fertiliser Company Ltd, a military-owned conglomerate, Pakistani airline Air Blue Ltd and a consortium including Bahria Foundation, domestic carrier Serene Air and US-based Equitas Capital LLC also submitted documents.

“The government will review the documents and give qualified parties access to data for due diligence,” the statement read.

Govt draws five potential buyers for PIA

Fauji Fertiliser Company, Air Blue and Serene Air among the interested parties.

www.dawn.com

 

[BouncerGuy]

Petition against PIA sell-off dismissed

The Lahore High Court (LHC) Rawalpindi Bench on Thursday dismissed a petition challenging the privatisation of Pakistan International Airlines (PIA), removing a key legal roadblock in the government’s ongoing efforts to divest its majority stake in the loss-making national flag carrier.

Justice Jawad Hassan issued a short order rejecting the petition, stating that detailed reasons would be shared later.

The petition had contested the legality of the privatisation, arguing that the federal government issued an advertisement for the sale of PIA without fulfilling the requirements laid out in Section 23 of the Privatisation Commission Ordinance, 2000.

The petitioner’s counsel claimed that the government had failed to properly assess PIA’s local and international assets and ignored principles previously settled by the Supreme Court regarding such transactions.

Arguing before the bench, the counsel insisted that the high court had jurisdiction under Article 199 of the Constitution to examine violations of law and Constitution by statutory bodies. He referred to a precedent set by the Supreme Court in Arshad Waheed vs Province of Punjab, authored by Justice Syed Mansoor Ali Shah, which elaborated on the scope of judicial review.

LHC ruling clears legal hurdle for govt’s plan to sell majority stake in loss-making national flag carrier

However, Justice Hassan noted that while courts can review administrative actions, judicial restraint must be exercised in matters of economic policy and financial decisions made by expert statutory bodies.

The petitioner further objected to the amendment introduced by the caretaker government in 2023 to Section 28 of the Privatisation Commission Ordinance, under which an appellate tribunal was constituted. He argued that such a tribunal was unnecessary since high courts are already constitutionally empowered to hear such cases.

Barrister Minaal Tariq, representing the Privatisation Commission, countered that the petition was both legally and factually flawed.

She maintained that all advertisement and asset evaluation requirements under the Ordinance were fulfilled and that the privatisation process cited in the petition had already become infructuous after the rejection of the sole bid in that particular round.

She argued that the current privatisation process is fully compliant with Article 173 of the Constitution and the Pakistan International Airlines Corporation (Conversion) Act, 2016. Emphasising that the government owns 96pc of PIA’s shares, she asserted that a competitive sale is essential to stem the national carrier’s financial bleeding and to fulfil Pakistan’s commitments to the International Monetary Fund (IMF).

The court also took note of similar cases already pending before the Sindh High Court (SHC) and a single-member LHC bench. Justice Hassan observed that under precedents set by the SHC in the KESC Labour Union case and the interpretation of the PIAC (Conversion) Act 2016, a broader judicial framework was already in motion.

DAWN NEWS

 

[BouncerGuy]

Govt approves four potential bidders for struggling PIA

The government said on Tuesday it had approved four parties, including business groups and a military-backed firm, to potentially bid for a stake in debt-ridden Pakistan International Airlines.

The government has been seeking to sell a 51-100 per cent stake in the struggling national airline to raise funds and reform cash-draining, state-owned enterprises as envisaged under a $7 billion International Monetary Fund programme.

It would be the country’s first major privatisation in nearly two decades.

Among the bidding groups, one is a consortium of major industrial firms Lucky Cement, Hub Power Holdings, Kohat Cement and Metro Ventures.

Another is led by investment firm Arif Habib Corp and includes fertiliser producer Fatima Fertiliser, private education operator The City School, and real estate firm Lake City Holdings.

Additionally, Fauji Fertiliser Company, a military-backed conglomerate, and Pakistani airline Airblue have been approved to bid for PIA.

“The pre-qualified parties will now proceed to the buy-side due diligence phase,” Privatisation Minister Muhammad Ali said in a statement from his ministry.

The review process is set to last two to two-and-a-half months, with final bidding and negotiations anticipated in the fourth quarter of 2025, Ali previously told Reuters.

The privatisation ministry also said that the Cabinet Committee on Privatisation approved the transaction structure for the Roosevelt Hotel located in New York, including options for both outright sale and long-term lease.

From the Roosevelt Hotel, Pakistan is expecting over $100 million as a first payment during this year, Ali previously told Reuters.

DAWN NEWS

 

[Cricket Warrior]

All 6,700 PIA Employees to Be Retained, Buyer Might Offer Golden Handshake

The federal government on Monday informed the National Assembly Standing Committee on Privatization that Pakistan International Airlines’ (PIA) current workforce of about 6,700 people would be protected, and every effort would be made to retain the maximum number of employees.

The privatization of PIA is expected to be finalized between October – December 2025.

Officials from the Privatization Commission briefed the committee that four parties have been pre-qualified for the transaction. These include the Lucky Cement Consortium, Arif Habib Group, Air Blue, and Fauji Fertilizer Company. Vetting of these groups is set to begin on Tuesday.

All 6,700 PIA Employees to Be Retained, Buyer Might Offer Golden Handshake

The federal government on Monday informed the National Assembly Standing Committee on Privatization that Pakistan International Airlines' (PIA) current

propakistani.pk

 

[Bewal Express]

All 6,700 PIA Employees to Be Retained, Buyer Might Offer Golden Handshake

The federal government on Monday informed the National Assembly Standing Committee on Privatization that Pakistan International Airlines’ (PIA) current workforce of about 6,700 people would be protected, and every effort would be made to retain the maximum number of employees.

The privatization of PIA is expected to be finalized between October – December 2025.

Officials from the Privatization Commission briefed the committee that four parties have been pre-qualified for the transaction. These include the Lucky Cement Consortium, Arif Habib Group, Air Blue, and Fauji Fertilizer Company. Vetting of these groups is set to begin on Tuesday.

All 6,700 PIA Employees to Be Retained, Buyer Might Offer Golden Handshake

The federal government on Monday informed the National Assembly Standing Committee on Privatization that Pakistan International Airlines' (PIA) current

propakistani.pk

Who picks up the debt? This is another scam that will be used to make billions for a Junta and puppets.

 

[IronShield]

PIA should be asset stripped and closed down.

Instead, the government will pick up the debt and allow the assets to go to new owners, who are ofcourse just a front for the real beneficial owners and that being the establishment junta.

 

[BouncerGuy]

NA panel endorses PIA privatization

The National Assembly’s Standing Committee on Defence on Thursday reaffirmed its support for the government’s decision to privatise Pakistan International Airlines Company Ltd (PIACL), while underscoring the need to preserve the airline’s heritage and protect the rights of its employees.

Chaired by Fateh Ullah Khan, the committee emphasised that any future operator must ensure that PIA aircraft continue to display the Pakistani flag and the iconic PIA logo, symbols regarded as representations of national pride and continuity.

Members urged that employees be treated with fairness and compassion throughout the privatisation process, with their rights and livelihoods protected.

The committee expressed strong appreciation for the recent resumption of PIA flights to the United Kingdom and France after a five-year suspension, calling it a major step towards restoring Pakistan’s international aviation presence. It commended the Ministry of Defence and the Pakistan Civil Aviation Authority (PCAA) for facilitating the development.

Urges flag and logo retention, protection of workers’ rights

During the meeting, the panel reviewed PIA’s operational status and discussed broader strategies to strengthen the aviation sector. The PIACL director-general briefed the committee on fleet development, organisational structure, and plans for expanding domestic and international networks.

Noting positive management steps aimed at reclaiming the airline’s lost stature, members voiced concern over the continued absence of domestic flight operations, which they said affects mobility for a large segment of the population. The committee called for urgent restoration and expansion of domestic air routes.

NA panel endorses PIA privatisation

Urges flag and logo retention, protection of workers’ rights.

www.dawn.com