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PIA: To privatise or not to privatise?

Saudi Arabia, Pakistan in talks on privatising PIA - reports

The Pakistani government has pitched a swathe of state-owned enterprises, including PIA - Pakistan International Airlines (PK, Islamabad International), to a high-level Saudi delegation led by the kingdom's foreign minister, Faisal bin Farhan Al Saud.

Among other matters, the meetings this week finalised a bilateral implementation mechanism between the two countries to closely coordinate on and execute investment-related opportunities. While statements from the Pakistani government did not reference PIA, multiple Pakistani news outlets reported that the Special Investment Facilitation Council, an agency of Pakistan's Ministry of Foreign Affairs, "invited" Saudi Arabia to partner Pakistan in privatising PIA, various airports, and other state-owned enterprises.

The reports did not explicitly state what any partnership would entail, although, in the case of PIA, it would presumably mean buying a stake in the carrier.

The Pakistani government is moving to privatise its perennially loss-making state-owned airline. Earlier this month, via its Privatisation Commission, it formally called for expressions of interest (EOI) to acquire 51-100% of the share capital and management control of the carrier. Around the same time, ch-aviation reported that several Gulf nations, including Saudia Arabia, were holding talks with the government about potential stakes in the airline.

Interested parties have until May 3 to submit their EOIs, after which further information on the number and identities of the bidders should become available. Under the present timeline, the Pakistani government hopes to have the contracts signed and the PIA privatisation in place by the middle of the year.


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Saudi Arabia, Pakistan in talks on privatising PIA - reports

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PIA shareholders endorse share transfer to PIA Holding Company

The meeting was attended by the Federal Secretary of Privatization Commission, Secretary Aviation, and Financial Advisor and were present during the voting.

Addressing the participants, the Chairman and CEO of PIA highlighted the institution’s progress, including a significant increase in share value and an operating profit after 13 years.

The CEO also said that the government is planning to commence operations in Europe and the UK from June 2024, following the clearance of an ongoing audit.

The government’s commitment to revamping PIA was evident in the presence of high-level officials, underscoring the importance of the national carrier’s revitalization.

It is worth mentioning that all financial losses and debts of the National Airline have been cleared as it has been shifted to the withholding company before the privatization.

All the hurdles for the PIA privatisation have been cleared, the sources said.

In a major development as many as three Gulf countries including the United Arab Emirates, Saudi Arabia and Qatar have shown interest in buying the cash-strapped Pakistan International Airlines (PIA) as the government expedites its privatisation plan, sources said.

arynews.tv

PIA shareholders endorse share transfer to PIA Holding Company

KARACHI: In an extraordinary annual meeting held at the PIA Training Center, shareholders of Pakistan International Airlines (PIA) Corporation Limited
arynews.tv arynews.tv
 
In a recent development in the process of Pakistan International Airlines (PIA) privatization, two crucial milestones were reached on April 20 and 21, ARY News reported on Monday.

According to the announced statement, PIA reached two significant milestones in its organizational development on April 20 and 21.

PIA’s shareholders and creditors have jointly approved the scheme of administration. This scheme, signed in an extraordinary shareholder meeting, is integral to the restructuring process aimed at enhancing the airline’s efficiency and viability.

Moreover, as part of the broader privatization efforts, the cabinet has given its approval for the divestment and restructuring of Pakistan International Airlines Corporation Limited (PIACL).

Additionally, during the restructuring process, the PIACL Creditors Meeting has ratified the management scheme, further solidifying the organization’s strategic direction and operational framework.

Last month, the federal government considered selling the majority shares of Pakistan International Airlines (PIA).

The Privatization Commission will decide on how many shares the government will sell as it nears the conclusion of the PIA privatization process, Coordinator to Prime Minister on Economy and Energy Bilal Azhar Kayani said during his appearance on ARY News show ‘KHABAR’.

According to him, the government was considering selling around 51% to a complete 100% shares of the national flag carrier.

Kayani said that the administrative control of the PIA will be handed over to the entity buying the majority of shares.



ARY News
 
SHC rejects plea for restraining order in PIA Privatization case

Petitioner said that after privatization of the Pakistan International Airlines (PIA) the matter will go to the jurisdiction of the ICJ.

Deputy Attorney General Khaleeq Ahmed opposed the plea and said, there are objections over the maintainability of the petition.

“The government has not been authorized under the Article 18-C to privatize the PIA,” petitioner argued.

“You didn’t include the Privatization Commission as party in the case, which has been the basic institution,” the bench remarked. “If the cabinet and other institutions can ignore the national interest,” the bench asked.

“See the agreements of privatization of various institutions, the situation will become clear,” Chief Justice Aqeel Abbasi said.

“There are scores of ways to tackle the petition, but it is a crucial matter,” the bench remarked. The judge said that the court wants to see all aspects of the matter thus hearing the case with patience.

The high court bench granted time to the petitioner for preparation of the case and adjourned the hearing until May 23.

arynews.tv

SHC rejects plea for restraining order in PIA Privatization case

KARACHI: The Sindh High Court (SHC) on Wednesday rejected plea for restraining order against privatization of the PIA, ARY News reported. Petitioner said
arynews.tv arynews.tv
 

Bilawal opposes PIA privatisation, calls for public-private partnership​


Pakistan Peoples Party (PPP) Chairman Bilawal Bhutto-Zardari on Wednesday opposed the privatisation of loss-making national carrier Pakistan International Airlines (PIA), recommending the government to operate it under a public-private partnership.

The disposal of the flag carrier is a step past elected governments have steered away from as likely to be highly unpopular, but progress on the privatisation will help cash-strapped Pakistan pursue further funding talks with the IMF.

In a newspaper advertisement, a government privatisation panel set a deadline of May 3 to receive statements of interest in PIA, which has piled up arrears of hundreds of billions of rupees.

"Finance minister approves of public-private partnership; we urge him not to privatise PIA and revive it under public-private partnership,” Bilawal said while speaking at an event on the occasion of Labour Day in Karachi.

Asserting the ownership of Pakistan Steel Mills (PSM) land by the Sindh government, Bilawal stated, "If the government cannot revive the Steel Mill, it should hand it over to the Sindh government, and we will run it under a public-private partnership."

He expressed optimism that both the Sindh and Balochistan governments would increase wages, while also expecting the federal government to raise wages.

"The philosophy of the PPP is simple; workers should be rewarded for their hard work. We hope that the federal, Sindh, and Balochistan governments will increase wages," he said.

"I am celebrating Labour Day with my worker brothers and sisters. The world economy runs on the hard work of workers. While the elite earn money, it's the workers' sweat that makes it happen."

Bilawal emphasised that former prime minister Zulfikar Ali Bhutto had given a Constitution that mentions workers and acknowledges their hard work, granting them the right to unionise.

Highlighting the legislative efforts in Sindh for workers' rights, Bilawal said, "The Sindh government has also passed laws in favour of workers' rights; no province can compete with us in this matter."

tribune.com.pk

Bilawal opposes PIA privatisation, calls for public-private partnership | The Express Tribune

PPP chairman says Centre should hand over PSM to Sindh govt and we will run it under PPP model
tribune.com.pk tribune.com.pk
 
PIA sell-off fails to attract foreign investors

As the privatization process of the restructured Pakistan International Airlines (PIA) has kicked off, foreign companies are apparently not interested in acquiring the majority stakes in the national carrier, sources told The Express Tribune on Wednesday.
According to the sources, only two companies from the Gulf countries received documents for investment by depositing $5,000.

These two firms have not even submitted their applications for tenders yet.

The last date for the submission of requests for tenders related to the privatisation of the PIA is May 3.

The date for the submission of applications for the PIA stake tenders is likely to be extended by a month, according to sources within the Privatisation Commission.

Privatization officials, including the PIA’s financial adviser on the national carrier for this process, are unfamiliar with bringing in investment from abroad.

The lack of enthusiasm of the foreign investors in the PIA’s privatization is a matter of regret as the Pakistani authorities have not even received their messages about the process yet.

The Privatisation Commission and the PIA administration also conducted various roadshows advertising the national carrier’s sell-off but failed to achieve much success.

In March this year, the board of directors of the PIA approved the government’s plan to privatize the national flag carrier ahead of the country securing a new International Monetary Fund (IMF) loan programme, estimating to fetch $250-300 million through the sell-off likely to a Middle Eastern country.

Last month, Pakistan placed on the block a stake ranging from 51% to 100% of the loss-making PIA, opening a new tab as part of reforms recommended by the IMF.

In a newspaper advertisement, the privatization panel set a deadline of May 3 to receive statements of interest in the PIA, which has piled up arrears of hundreds of billions of rupees, and it appointed EY Consulting as the financial adviser for the deal.

"The restructured PIA is being offered to potential investors in its 'debt-lite' new structure for a 51%-plus stake," the Privatisation Commission wrote in a website presentation.

The panel aimed to sign a share price deal by June 24, after completing all steps in the transaction.

"The restructured PIA provides an opportunity to invest in a full-service airline."

The PIA's 23% share of Pakistan's aviation market is the biggest, and the airline could grow further to exceed historic levels of 30%, the panel said.

With a fleet of 34 aircraft comprising 17 Airbus A320s, 12 Boeing B777s, and five ATRs, the airline loses traffic to Middle Eastern carriers, who have a market share of 60%, because of an absence of direct flights to destinations.

SOURCE: EXPRESS TRIBUNE
 
Only 2 companies show interest in buying PIA

Foreign companies are reportedly not interested in acquiring the majority stakes in Pakistan International Airlines (PIA) as only two companies from the Gulf countries received documents for investment by depositing $5,000, ARY News reported on Thursday quoting sources.

Sources told ARY News that these two firms have not even submitted their applications for tenders yet as last date for tenders related to the privatisation of the PIA is May 3.

According to sources within the Privatisation Commission, the date for the submission of applications for the PIA stake tenders is likely to be extended by a month.

The Privatisation Commission and the PIA administration also conducted various roadshows but failed to achieve much success, sources said.

Earlier, Pakistan International Airlines (PIA) had requested a 30-day extension for holding its annual general meeting (AGM).

The national flag carrier has submitted application to the Securities and Exchange Commission of Pakistan (SECP), citing incomplete financial accounts and audit as reasons for the delay

The airline has also dispatched a letter to the stock exchange, informing shareholders of the extension and the reasons behind it.

Sources familiar with the matter revealed that the request for delay is linked to ongoing privatization process of PIA.

The AGM is likely to take place by May 30 after the requested extension, they say.


ARY News
 
10 parties express interest in buying stakes in PIA

In a significant development regarding the privatization of Pakistan International Airlines (PIA), the government revealed Thursday initial documentation has been completed by 10 major parties, expressing their keen interest in the process. These interested parties also include three private airlines currently operating in Pakistan.

This announcement came during a media briefing by Abdul Aleem Khan, Federal Minister for Privatization, Investment Board, and Transport. He said that these parties are also making consortiums with local and also some foreign partners.

Khan further announced that the Privatization Commission has extended the deadline for submission of Letters of Intent (LoIs) in the PIA privatization by 15 days. Consequently, the Privatization Commission Board on Thursday also extended the date. Interested parties now have until May 18 to submit their LoIs for consideration, earlier the date was May 3. He emphasized that there will be no further extension beyond this date.

Meanwhile, according to Bloomberg, Arif Habib has reportedly submitted a Letter of Interest (LoI) to bid for the stake sale of state-owned Pakistan International Airlines (PIA). The media conglomerate also reported that Akram Wali Muhammad, the Managing Director of Gerry’s Group, has submitted an initial bid.

Addressing concerns about inaccuracies in reporting on PIA’s privatization, Khan assured that the situation was promising. He stressed that PIA still holds immense potential, especially with the addition of new aircraft, potentially transforming it into a profitable entity. Khan highlighted the importance of privatizing PIA, citing the substantial losses incurred by the airline, estimated at 830 billion rupees, and asserted that privatization would serve the nation’s interests.

In response to a statement by PPP Chairman Bilawal Bhutto Zardari opposing privatization, Abdul Aleem Khan said that Bilawal Bhutto and the PPP love Pakistan, and he will meet the PPP chairman to convince him.

Khan mentioned that the government will save billions of losses from government institutions by privatizing them and suggested that this money could be spent on welfare projects.

Khan lamented the economic drain caused by such institutions, emphasizing that it is not the government’s role to conduct business or manage enterprises. He stressed the importance of involving the private sector to modernize and expedite the transformation of these institutions into profitable ventures.

Furthermore, Khan disclosed that other entities, including Steel Mill, Discos, First Women Bank, and House Building Finance Corporation, are also undergoing privatization. He assured swift action following government directives in this regard.

Khan underscored the significance of involving the private sector in revitalizing these entities, stating that it was essential to adapt them to modern demands and make them profitable. He reiterated that all obligations of PIA are being fulfilled before privatization, ensuring a lucrative deal.

Responding to questions, Khan expressed the government’s desire to privatize six to seven Discos while emphasizing that three strategic Discos would remain under government control. Regarding PIA’s flights to Saudi Arabia for Hajj and Umrah, he highlighted their profitability and suggested similar arrangements with Europe, America, Canada, and Middle Eastern countries.

Khan also revealed that the 10 renowned companies expressing interest in PIA’s privatization are seeking partnerships with international firms and have requested a two-week extension, which has been approved by the Prime Minister.

Finally, Khan stressed the need for transparency in all privatization processes, committing to ensuring that they are conducted with utmost integrity and meritocracy, thereby preventing any unwarranted criticism.


The News
 
PIA inches closer to privatisation

The Competition Commission of Pakistan (CCP) gave the green light to the Scheme of Arrangement (SoA) for the privatisation process of Pakistan International Airlines Corporation Limited (PIACL).

This approval signals a pivotal step towards the PIACL’s restructuring process and approval from the SECP once finalized, this will formalise the transfer of non-core assets and liabilities to the newly-formed PIA Holding Company Limited, setting the stage for a debt-light PIACL.

The privatisation of the PIACL has garnered substantial interest from major investors, including airlines and business conglomerates, who have submitted their expressions of interest for this transaction. The Privatisation Commission (PC) has extended the deadline for submitting the Statement of Qualification (SOQ) till May 17, 2024, upon request from the interested parties.

The decision aims to facilitate a competitive and fair bidding process, ultimately, leading to successful privatisation outcome.

Ten companies have reportedly shown their interest in acquiring the majority stakes in Pakistan International Airlines (PIA), it emerged Friday.

Sources told ARY News 10 companies including three domestic aviation companies have submitted their applications for tenders.

Fly Jinnah, AirSial, Arif Habib Group, Shujaat Azeem Group’s consortium, Tabba, Tariq Group and Sehgal groups have also shown interest in acquiring the majority of PIA shares, the sources said.

The last date of PIA privatisation was May 3 (today) which has now been extended to 18 with aim of providing such companies with ample time to finalise their proposals.

arynews.tv

PIA inches closer to privatisation

ISLAMABAD: The Competition Commission of Pakistan (CCP) gave the green light to the Scheme of Arrangement (SoA) for the privatisation process of Pakistan
arynews.tv arynews.tv
 
CAA unions oppose outsourcing of Pakistan airports

The Employee Unions of the Civil Aviation Authority of Pakistan (CAA) on Monday voiced strong opposition to the decision regarding outsourcing of Pakistan airports, ARY News reported.

A meeting was held at the CAA headquarters regarding the outsourcing of airports in which the CAA unions openly opposed the airports outsourcing initiative.

Sources revealed that CAA union representatives openly expressed their dissent during the meeting, signaling a unified front against the outsourcing plans. International Finance Corporation (IFC) officials, present at the meeting, posed queries to the union representatives regarding their stance on the matter.

In response, union officials affirmed their longstanding opposition to the outsourcing proposal, dating back to its inception in 2016. They highlighted the detrimental impact such a move would have on the country’s interests and the integrity of the institution.

Union office bearers, alongside International Finance Corporation officials and the Director HRCAA, actively participated in the deliberations.

The meeting served as a platform for robust discourse on the contentious issue, with the unions reiterating their resolve to resist any attempts to outsource airports, safeguarding the interests of both the nation and the institution.


ARY News
 
Uprise Group enters bid for PIA privatisation

Uprise Group has joined the bid for the privatization of Pakistan International Airlines (PIA), led by seasoned aviation executive Tabassum Pardesi, according to sources within the Privatization Commission.

Pardesi's credentials include founding Skywise Airline in South Africa in 2014, a historic feat that made her the first woman to own an airline. She has since played a pivotal role in shaping the Uprise Group, which encompasses Uprise Markets, Uprise Africa, and Uprise Aviation.

Pardesi's brief tenure as Director of Customer Services at PIA in 2017 ended after just four months due to her dissatisfaction with the management's failure to implement necessary changes, as outlined in her resignation letter.

In her resignation, Pardesi highlighted several recommendations aimed at restoring PIA's reputation and operational efficiency. These recommendations included prioritizing customer services and operational safety, re-evaluating the financial viability of strategies, streamlining organizational structure, defining a clear vision and turnaround strategy, developing a comprehensive fleet plan, seeking financial injection with realistic projections, addressing workplace toxicity, improving internal communication, and leveraging aviation investors' expertise.

The letter available with The News sheds light on the challenges faced within PIA's management and operations, underscoring the need for comprehensive reforms in the aviation sector.Meanwhile, the Securities and Exchange Commission of Pakistan (SECP) greenlighted the Scheme of Arrangement between Pakistan International Airlines Corporation Limited (PIA) and PIA Holding Company Limited (HoldCo).

Earlier this year, the Federal Cabinet endorsed the legal segregation plan of PIA and the Scheme, directing the Aviation Division, PIA, and HoldCo to carry out the necessary corporate and regulatory actions to implement the Scheme. Last month, the scheme also gained approval from the shareholders and creditors of PIA.

The restructuring involves the legal separation of PIA’s core aviation business from its non-core activities and the transfer of its non-aviation-related business from PIA to HoldCo. The approval of the scheme clears the path for HoldCo to acquire 100 percent shareholding in PIA and the simultaneous issuance and allotment of shares by HoldCo to the qualifying shareholders of PIA.


The News
 
PIA privatisation: deadline for EoI submission not expected to be extended further

The deadline for companies to express their interest in buying national carrier Pakistan International Airlines (PIA) is not expected to be extended further, an official at the Privatisation Commission (PC) told Business Recorder on Thursday.

“The number of applications can be confirmed tomorrow after closing time,” the official added.

The deadline to submit expression of interest (EoI) was earlier extended by two weeks (May 3 to May 17) by the Federal Minister for Privatisation, Abdul Aleem Khan, amid unconfirmed reports that local and international companies had shown preliminary interest in PIA’s privatisation.

The minister had also said that three local airlines were also among potential parties and wanted to form a consortium with international companies.

While quoting Bloomberg, Reuters reported that Pakistani tycoon Arif Habib and aviation-based company Gerry’s Group were among the 10 bidders looking to buy a majority stake in the PIA.

However, a week later, Arif Habib Corporation Limited (AHCL) clarified that submitting an expression of interest as well as the Statement of Qualification (SOQ) for the purchase of a majority stake in the PIA did not imply that it had become a bidder yet.

The company confirmed that it had indeed submitted the SOQ after the EoI.

“However, it is crucial to clarify that this submission does not constitute price-sensitive information, nor does it confer upon AHCL the status of a ‘bidder’ as implied in the aforementioned news article,” the company had said in its notice to the stock exchange.

The disposal of the flag carrier is a step past elected governments have steered away from as it is likely to be highly unpopular, but progress on privatisation is expected to help cash-strapped Pakistan pursue further funding talks with the International Monetary Fund (IMF) for a longer and larger bailout programme.

Apart from loss-making entities such as PIA, the government has hinted to rather privatise all state-own enterprises (SOEs), apart from ‘strategic entities’. It did not specify what strategic meant.

However, speaking to a panel discussion at the Pre-Budget Conference held in Lahore on Sunday, Finance Minister Muhammad Aurangzeb had said there are no “strategic state-owned enterprises” and “the concept of a strategic SOE does not exist.”

“There will be a public-private partnership and we will accelerate the privatisation agenda,” he said.

Pakistan’s ambitious privatisation programme – which includes loss-making DISCOs – is seen by many as an important step towards alleviating some of the expenditure burden on the government strapped for cash.

With high taxation and energy tariffs, room for growth has shrunk further with the IMF expecting Pakistan’s GDP to grow by 2% in the current fiscal year.



Business Recorder
 
8 business groups express interest in PIA's acquisition: Aleem Khan

Eight major business groups have expressed interest in acquiring Pakistan International Airlines (PIA), Federal Minister for Privatisation and Investment Abdul Aleem Khan said on Friday.

The interested institutions, including Fly Jinnah (presented by Arif Habib Corporation), Airbloom Limited, Shonksi China CIG Ltd, Jiri International Pvt Ltd, Younis Brothers Holdings Consortium, Pak Ethanol Consortium, and Blue World City Consortium, have submitted their Statements of Qualification and Expressions of Interest within the stipulated time.

The Privatization Commission will conduct a pre-qualification process as per the PC Ordinance 2000 rules, and eligible institutions will be invited to the next stage.

The federal minister extended the privatisation offers for PIA until May 17, allowing more time for interested parties to participate.

With eight major business groups expressing interest, the stage is set for a competitive bidding process, which will ultimately benefit the national airline and the country's economy.



Samaa TV
 

PIA privatization: Commission to shortlist companies tomorrow​


According to sources, a crucial meeting of the Privatization Commission will be held tomorrow to move forward with the process of privatizing PIA.

Sources said that the meeting will be a significant step forward in the privatization process, as eight local and foreign companies have already expressed interest in buying PIA.

These companies include Fly Jinnah, Airblue Limited, Arif Habib Corporation Limited, and Jerry’s International Private Limited.

Out of the 8 interested companies, 4 will be shortlisted and asked to submit their business plan and offer.

Sardar Ashraf D. Baloch Company will also participate in the bidding process in collaboration with SHANXI CIG Company Limited China.

Furthermore, three consortiums – Pak Ethanol Consortium, Blue World City Consortium, and YB Holding Private Limited Consortium – have also expressed interest in buying PIA.

Earlier today, the government enforced the Pakistan Essential Services (Maintenance) Act, 1952 allowing Pakistan International Airlines (PIA) to take punitive actions against employees who disobey lawful orders.

The Essential Services Act implemented on the orders of Ministry of Interior and for a period of six months.

According to a notification, the act was enforced to ensure uninterrupted airline operations.

arynews.tv

PIA privatization: Commission to shortlist companies tomorrow

KARACHI: Eight companies have reportedly shown their interest in buying Pakistan International Airlines (PIA), ARY News reported citing sources.
arynews.tv arynews.tv
 
PIA sell-off: 6 companies/consortiums pre-qualified for privatisation process

The Ministry of Privatisation on Monday said six companies/consortiums have been pre-qualified in the process of Pakistan International Airlines (PIA) privatisation.

The statement comes after a meeting of the Privatisation Commission Board, which was chaired by Federal Minister for Privatisation, Investment, and Communications Abdul Aleem Khan.

Air Blue, Arif Habib Corporation, Blue World City, Fly Jinnah, Pak Ethanol Consortium, and YB Holdings Consortium are included in the list.

The board meeting decided that pre-qualified companies/consortiums would be able to participate in PIA’s bidding.

“We will ensure the transparent and swift privatisation of all loss-making institutions,” Aleem Khan was quoted as saying in the statement. “The technical and financial stability of the institutions participating in the privatisation process will be taken into account.”

“We are privatising loss-making institutions to stabilise the national economy,” the minister added.

He also urged to broadcast the privatisation process live on media to ensure transparency.


Business Recorder
 
Privatisation of PIA scheduled for early August 2024: sources

The much-anticipated privatization of Pakistan International Airline (PIA) will likely take place in the first week of August 2024, ARY News reported on Tuesday.

Sources close to the development revealed that a total of six companies have been shortlisted for the privatization of the national flag carrier.

The shortlisted companies have sought details related to PIA and asked for time till July to review the financial issues of the national airline.



arynews.tv

Privatisation of PIA scheduled for early August 2024: sources

The much-anticipated privatization of Pakistan International Airline (PIA) will likely take place in the first week of August 2024, ARY News reported on
arynews.tv arynews.tv
 
Bidders interested, but wary of EU ban on PIA

Pakistan could expect much higher foreign exchange proceeds from the sale of the Roosevelt Hotel — an upscale property in New York’s Manhattan district — with an improved mix-use sell-off transaction proposed by US advisers.

But pre-qualified bidders for Pakistan International Airlines (PIA) have expressed concerns over the European Union’s ban on Pakistani airlines, which could affect the bid price for the national flag carrier that is currently up for sale.

This was the crux of a news briefing on Wednesday, led by Privatisation Minister Abdul Aleem Khan and federal secretaries of the privatisation division and privatisation commission, Jawad Paul and Usman Bajwa, respectively.

Mr Bajwa said that Jones Lang LaSalle Incorporated (JLL) — a Chicago-based global real estate services firm hired to advise on the privatisation structure — had submitted a comprehensive due diligence report to the government and proposed three options.

The report suggested that floor area ratio (FAR) of the building currently stood at 1:15 (650,000 sq. feet retail area) which could be doubled to 1:30 (about 1.3 million sq. feet), thus increasing the retail sellable area, with support from the metropolitan authorities and secondary market.

“The increase in Roosevelt’s FAR provides a difference of a few billion dollars,” chipped in minister Aleem Khan who said that real estate was one area he could claim significant personal expertise, unlike other entities on the the privatisation list. He said he was not talking about a few billion dollars as the total value of Roosevelt but the additional value because of the higher floor area ratio — a term used for the covered area for construction.

“I may not be as expert as the expert advisers (JLL) but I would be personally responsible for even a loss of a single rupee in the Roosevelt transaction against its true potential and best value,” said the minister who himself operates one of the leading real estate businesses in at least three major cities, including Islamabad.

The cabinet had approved a joint venture option with international investors for mix-use development. “We now have to tell them what are the transaction options” for which the report would be taken up with the federal cabinet, said Mr Bajwa, explaining that these could include an outright sale, long-term lease, or joint venture operations depending on all the pros and cons, including but not limited to maximum proceeds over a period of time.

Mr Bajwa said the privatisation commission would take up the JLL’s report to the Cabinet Committee on Privatisation (CCoP) for a decision and was targeting to invite expressions of interest (EOIs) by the first week of August. “We are ready to go to CCoP,” he said.

PIA bids

Talking about the PIA’s privatisation, Mr Bajwa said the six pre-qualified bidders — Air Blue, Lucky Group, Arif Habib Group, Blue World, Pak Ethanol, and FlyJinnah — were currently conducting due diligence on the PIA’s data and confirmed that they also had concerns over European Union Aviation Safety Agency (EUASA) ban on Pakistani airlines that also applied to PIA.

He said the PIA management had informed the bidders and the government as well that the airline had been cleared by the EUASA but the ban could not be lifted because of regulatory functions that pertained to certain things with Civil Aviation Authority (CAA) and their standard operating procedures (SOPs), currently going through restructuring. Mr Bajwa said all the bidders would be provided comprehensive due diligence by CAA as well to address those concerns.

The minister deplored that a former cabinet member had said adverse things about Pakistani pilots despite the fact that Pakistani pilots were among the best in the world. “There may be issues with safety and security of planes but this would improve once new investors take over and airports are also privatised” for which the sale process was underway. He said the PIA had among the best international routes and spots. These are the biggest assets that would make the airline profitable the day it is in private hands. “Hopefully, bidders concerns would be resolved in due course” and would not impact the bids.

Mr Khan said the PIA hotels’ proceeds had been separated from the core PIA whose Rs630bn debt would be paid off over a period of 10 years under an easy payment plan with banks. The hotel proceeds would finance these PIA debts.

Mr Bajwa explained that PIA bidders would complete their due diligence in a week and the timeline for bidding would be set within 10 days in consultation with bidders. He said the level of detail bidders and their experts had gone into and questions raised showed very serious interest. “We expect very healthy competition,” he said.

The minister added that the cabinet had authorised divestment of 51-100pc shares and it would be decided within a few days in consultation with bidders how much shareholding should be actually offered for bidding.

“We would like to keep shareholding in PIA for a better dividend or subsequent improved return but this would be based on finances the government could also spare for fresh investment in line with private investment,” the minister said, adding that all bidders would bid for the same size of shareholding and processes would be made transparent.

The minister said the nation was fully convinced with the privatisation programme under which 24 entities were on the active sale list, spanning five years. He lamented that former chief justice Iftikhar Muhammad Chaudhry had caused irreparable loss, not only to privatisation but also to the country’s economic interests. He should come forward and tender a public apology and his assets should be sold and pay at least a fraction of the national loss.

He pretended as saviour of the nation and destroyed Pakistan Steel, PIA, and Reko Diq with billions of dollars of loss. “We paid more than Rs500bn to PIA since and $6bn additional cost for Reko Diq along with national integrity. Today, PIA losses stand at Rs830bn,” he said, adding that all the stakeholders of the country contributed to these national losses over the years with no exception, including all the political parties.

DAWN
 
‘On sale’ PIA has 304 employees per plane, NA committee told

Pakistan International Airlines (PIA), which is currently for sale, has an average of 304 employees per aircraft, the aviation division’s head told a National Assembly committee on Monday.

In a detailed briefing to the Standing Committee on Aviation, Saif Anjum, the aviation division secretary, said PIA has a fleet of 34 aircraft, of which 13 are on dry lease while the rest are owned by the airline.

Currently, PIA has a workforce of 10,323 employees, of which 7,399 are regular while 2,924 are outsourced.

The committee was informed that the privatisation process of PIA is almost complete.

National carrier has workforce of over 10,000 persons; PCAA, ASF decry lack of funding

On the performance of Pakistan Civil Aviation Authority (PCAA), the meeting was told the regulator currently operates 22 out of 43 airports in the country, of which 13 are international.

However, the aviation regulator has been experiencing development budget constraints for several years, forcing it to use outdated equipment.

The Airport Security Force (ASF) representative also complained about the lack of funds, which is why the force is compelled to use old security gadgets.

Still, the ASF representative claimed, they have been working on procuring the latest gadgets and some baggage scanning equipment have already arrived.

The meeting was informed that ASF has 15,565 personnel, including 14,135 uniformed and 873 civilian staff.

Of the 43 airports located across the country, ASF is deployed at 22.

The committee, which met under the leadership of PPP MNA Nawabzada Iftikhar Ahmed Khan, expressed concerns over cracks in the aircraft parking area at Allama Iqbal International Airport, Lahore.

In response, the PCAA officials acknowledged the issue and said the renovation is underway.

The committee also questioned the appointment of aero-medical staff and pilots’ licensing and sought a comprehensive report on these matters.

Regarding complaints about delays of private airlines and inconvenience faced by travellers, Mr Anjum said notices had been served on two private carriers, Air Blue and Air Sial, as there was no excuse to justify frequent delays.

PIA would also be served notice if its flights are delayed, he added.

To another question, he informed the meeting that due to feasibility, private airlines are not interested in operating flights on the Islamabad-Lahore-Islamabad route.

The committee emphasised the need to improve the quality of in-flight catering services and the behaviour of PCAA staff towards passengers.

In response to a member’s query, the ASF representative informed the meeting that nobody, except the VVIPs, is exempted from body searches at airports.

The committee was also informed about the recently devised policy ‘Civil Unmanned Aircraft Rules, 2024’, to regulate the usage of drones. The policy is set to be presented before the federal cabinet for approval.



Dawn
 

Govt expedites PIA privatisation​


The federal government has prepared a framework for the division of assets and liabilities of the national flag carrier—the Pakistan International Airlines (PIA)— as part of its privatisation process.

According to official documents seen by The Express Tribune, the airline’s assets and liabilities have been divided between the PIA and a holding company.

The government has disclosed that the total value of the PIA’s assets is Rs171.43 billion. Once the privatisation process is completed, the PIA’s assets along with its liabilities will be divided between the holding company and the new company taking over the airline.

The documents show that out of the PIA’s assets worth Rs171.43 billion, assets worth Rs146.57 billion will be transferred to the new management of the PIA, while assets worth Rs24.86 billion will remain with the holding company.

Out of the national airline’s Rs830 billion deficit, Rs202 billion will be borne by the PIA and Rs628 billion by the holding company. As a result, the new company will begin the PIA operations with a deficit of Rs55.70 billion.

According to the documents, the government will divide the PIA operations into core and non-core segments as part of the privatisation process. All assets and liabilities of the PIA will be divided between these two segments.

Post-privatisation, assets including aircraft worth Rs92.62 billion, technical equipment for flight operations, operational offices, and other properties, along with long-term deposits worth Rs6 billion, trade debts and advance deposits worth Rs22.35 billion, and other receivables worth Rs16.83 billion, will be transferred to the new PIA management. Additionally, liabilities in the form of long-term financing worth Rs15.63 billion, aircraft leases worth Rs30 billion, employee salaries amounting to Rs27.26 billion, and trade and other payables totaling Rs121 billion will be inherited by the new company.

The documents further reveal that due to the PIA’s privatisation, a total of Rs628 billion in losses and liabilities have been transferred to the PIA holding company.

Long-term investments worth Rs4.53 billion in the PIA Investments, Skyroom Private Limited, Midway House Private Limited, and PTDC Duty-Free Shops Limited, as well as hotels including the Roosevelt, will be transferred to the PIA holding company.

Loans taken from domestic and international institutions and the interest payable on them, amounting to Rs444 billion, will also be transferred to the holding company.

According to the documents, the PIA owes Rs161 billion to the government and Rs267 billion to commercial banks, which will be transferred to the holding company.

tribune.com.pk

Govt expedites PIA privatisation | The Express Tribune

Govt expedites PIA privatisation
tribune.com.pk tribune.com.pk
 
The PIA privatization initiative has been ongoing for over a year but nothing happens besides moving assets and liabilities from one holding account into another, likely for money laundering purposes. Meanwhile, the performance of the airlines continues its downward spiral to depths of despair never seen before. What a shame.
 
PIA privatisation likely in September 2024

As per details, the delay of PIA’s accounts is the reason behind the development. Additionally, companies interested in the privatization have not finished the due diligence process.

These interested companies are reportedly insisting on reopening routes to Europe. Sources suggest that an accurate valuation of PIA can only be determined if its European routes are active.

Six companies/ consortiums including Air Blue, Arif Habib Corporation, Blue World City, Fly Jinnah, Pak Ethanol Consortium, and YB Holdings Consortium, have been pre-qualified in the process of PIA privatisation.

Earlier, Finance Minister Muhammad Aurangzeb had earlier expressed hope that PIA’s privatisation would be finalised by July.

On July 9, the National Assembly’s standing committee on Aviation on Monday was informed that the privatisation process of Pakistan International Airlines Corporation (PIAC) is almost completed.

The Civil Aviation Authority (CAA) currently operates 22 out of 43 airports, including 13 international ones, and has been experiencing budget constraints on the development side for several years, said a statement issued today.

As a result, the CAA was using second-generation equipment, whereas developed countries are utilizing the latest third-generation equipments.

arynews.tv

PIA privatisation likely in September 2024

The privatization of Pakistan International Airlines (PIA) is expected to be finalised in September instead of August, sources familiar with the
arynews.tv arynews.tv
 
PIA privatisation: Private companies seek details on airline’s operations

Sources told ARY News that the companies have also sought details of PIA’s daily flights, including domestic and international routes.

The private companies also sought information regarding airline’s revenue generated from premium flights and air service agreements with other countries. They have also requested for complete information of PIA’s aircraft fleet.

A day earlier, it was reported that PIA’s privatisation is expected to be finalised in September instead of August. The delay of PIA’s accounts is the reason behind the development.

Additionally, companies interested in the privatisation have not finished the due diligence process.

These interested companies are reportedly insisting on reopening routes to Europe. Sources suggest that an accurate valuation of PIA can only be determined if its European routes are active.

Six companies/ consortiums including Air Blue, Arif Habib Corporation, Blue World City, Fly Jinnah, Pak Ethanol Consortium, and YB Holdings Consortium, have been pre-qualified in the process of PIA privatisation.

arynews.tv

PIA privatisation: Private companies seek details on airline’s operations

KARACHI: Private companies interested in acquiring Pakistan International Airlines (PIA) have sought detailed information on the airline's daily flight
arynews.tv arynews.tv
 
FearlessRoar said:
PIA privatisation: Private companies seek details on airline’s operations

Sources told ARY News that the companies have also sought details of PIA’s daily flights, including domestic and international routes.

The private companies also sought information regarding airline’s revenue generated from premium flights and air service agreements with other countries. They have also requested for complete information of PIA’s aircraft fleet.

A day earlier, it was reported that PIA’s privatisation is expected to be finalised in September instead of August. The delay of PIA’s accounts is the reason behind the development.

Additionally, companies interested in the privatisation have not finished the due diligence process.

These interested companies are reportedly insisting on reopening routes to Europe. Sources suggest that an accurate valuation of PIA can only be determined if its European routes are active.

Six companies/ consortiums including Air Blue, Arif Habib Corporation, Blue World City, Fly Jinnah, Pak Ethanol Consortium, and YB Holdings Consortium, have been pre-qualified in the process of PIA privatisation.

arynews.tv

PIA privatisation: Private companies seek details on airline’s operations

KARACHI: Private companies interested in acquiring Pakistan International Airlines (PIA) have sought detailed information on the airline's daily flight
arynews.tv arynews.tv
Click to expand...


If relationship between the two countries were good this would have been a good opportunity for Bharatiya investors to buy PIA.
 
PIA Sale: Govt Offers High-Risk Terms to Buyer

The federal government has proposed risky terms for the sale of majority stakes in Pakistan International Airlines (PIA) by allowing partial payments and debt-funded investments over three years.

Under the draft agreements, the buyer can pay one-third of the sale price in cash and settle the rest against PIA’s payables. Dividend payments to shareholders would be paused for three to five years, reported Express Tribune.

The buyer may make a partial cash payment and settle the rest against financial obligations, but there are concerns about the government’s ability to settle these obligations promptly. The government has allocated Rs. 630 billion to the PIA holding company, with the finance ministry servicing this amount through commercial banks and the rest is to be covered by privatization proceeds and dividends.

The draft agreement allows the buyer to invest over three years. Another term permits the buyer to take on 70 percent debt for investments, raising $490 million through debt and investing $210 million in equity. The finance ministry doesn’t like this due to the risks of negatively impacting PIA’s balance sheet.

The draft includes an unconditional and on-demand commercial bank guarantee for one-third of the investment amount. Financial advisors suggest including investment plans in the Shareholders’ Agreement, not the Subscription Agreement, favoring the investor by reducing penalties for breaches. The proposal also prevents the buyer from selling stakes for three to five years.

The federal government aims to sell 51-100 percent of PIA stakes, including management control, to one of six shortlisted parties. The privatization process, delayed from February and August, is now targeted for mid-October 2024.


propakistani.pk

PIA Sale: Govt Offers High-Risk Terms to Buyer

The federal government has proposed risky terms for the sale of majority stakes in Pakistan International Airlines (PIA) by allowing partial payments and
propakistani.pk propakistani.pk
 
PIA’s privatisation hits snag as SBP refuses waiver on loans

An obstacle to the long-delayed privatisation of Pakistan International Airlines (PIA) has emerged as the State Bank of Pakistan (SBP) has refused to grant a waiver/exemption on the loans of commercial banks of Rs268 billion as well as guarantees in dollars.

It has been estimated that if the agreed waiver is not granted, the banking sector might face a whopping loss of around Rs40 billion. The Ministry of Finance and commercial banks have agreed upon treating this loan amount of Rs268 billion against PIA as a fresh loan with effect from January 1, 2024. It requires a waiver from the SBP but now the regulator is reluctant to grant this concession.

The News sent a query to the SBP, but it has not responded till the filing of this report.

Top official sources confirmed to The News on Wednesday that the commercial banks entered into the transaction based on the understanding with the Ministry of Finance that all regulatory coverages including waivers would be available, which would protect the bankers from incurring any provisioning/loss and this was agreed in the term sheet dated March 28, 2024, entered by and between PIA Holding Company Limited and the syndicate financiers. However, as per clause “g” of the SBP letter, the commercial banks are required to recognise modification loss and as per clause “f” of the letter Expected Credit Loss (ECL) provisioning against GoP guaranteed USD loans under IFRS-9 in their P&L.

As per clauses a, b, c and d of the SBP letter, the subject financing to PIAHCL shall be treated as a fresh and regular loan with effect from January 1, 2024. Therefore, it is our understanding that the concept of modification loss does not arise in this particular facility. However, it is a fact that the fair value impact under IFRS-9 shall be applicable, which would result in a significant upfront loss to the entire banking industry.

“We request SBP to reconsider financiers’ request for complete waiver/exemption of IFRS 9 for both PKR and the sovereign guaranteed FCY (USD) loans and its resultant modification/fair valuation loss as applicable under this facility. Without this exemption/waiver, the financiers will be unable to proceed with the aforementioned transaction on the existing commercial terms agreed in the Term Sheet as it would result in significant losses to the industry.

The government has already delayed the privatization of PIA for couple of months and efforts are underway to accomplish the task within the ongoing calendar year 2024.



The News
 
PIA privatization progresses with October 1 set as critical sate

Minster for Investment Abdul Aleem Khan praised the Footwear Association exhibition noting the high international standards of the products and their growing export presence and acknowledged the improved ties with international brands and the increasing involvement of Chinese companies in joint ventures with Pakistani firms.

In response to the Prime Minister's request, the exhibition will move to China a month earlier this year.

Abdul Aleem Khan highlighted the exhibition's success and commended the Prime Minister and Minister of Commerce for their support.

The Prime Minister has also called for a fivefold increase in trade officers, raising their number to around 20.

Kamal emphasized that the government's role is to facilitate business, not run it.

He urged Pakistani businessmen to seize the opportunities presented by the shift of companies from China due to rising costs.

He assured that the FBR would assist with taxation, banking, and other issues, and would advocate on behalf of the business community.

“The privatization process for PIA is advancing, with October 1 set as a key date,” Abdul Aleem Khan said.

“Six Pakistani companies, along with international partners from the UAE, Malaysia, and Turkey, are involved in this process and a suitable company will take over PIA,” Aleem Khan said.

He noted the significant financial losses due to PIA and the government's commitment to resolving these issues by privatizing institutions to improve economic efficiency.


Samaa TV
 
Pakistan extends PIA privatisation due diligence to Oct 1

In a bid to steer Pakistan International Airlines (PIA) away from a financial nosedive, the Pakistani government has granted a two-month extension to the due diligence period for the airline’s privatisation process, now set to conclude by October 1, 2024.

This decision, prompted by requests from bidding parties, includes a proposal by Privatization Commission for the winning bidder to retain existing employees for up to three years—a nod to the sensitivity of labor issues in the nation’s public sector sell-offs.

Since February 2015, PIA has accumulated staggering losses of Rs599 billion (US$3.34 billion), with last year alone accounting for Rs75-80 billion in red ink, according to Jawad Paul, Secretary of the Privatization Division.

Speaking before the National Assembly’s Standing Committee on Privatization on Monday, Jawad Paul noted that four out of the six interested bidders had requested extensions ranging from 60 days to six months, leading the government to settle on a two-month extension.

Pre-qualified bidders have conducted site visits to PIA’s facilities in Karachi in late June, followed by a series of pre-bid meetings in July and August. These steps are part of a meticulous process leading up to the final bidding, which will include live streaming to ensure transparency. Once the due diligence is complete, the government plans to finalize bidding documents and seek approvals from the Cabinet Committee on Privatization (CCoP) and the federal cabinet before contract signing and awarding.

The privatization of PIA, Paul emphasized, is a “loss minimisation effort,” intended to redirect funds to other economic and social sectors.

MNA Sehar Kamran questioned the Secretary, asking whether any performance audit of PIA had been conducted, suggesting that the decision to privatize was made simply because the airline was deemed inefficient. “Had there been a performance audit, we wouldn’t be in this position now,” she argued. “We shouldn’t just sweep this issue under the carpet.” In response, Paul stated, “I’m unfamiliar with that matter. I cannot comment, as it falls under the jurisdiction of the Aviation Ministry.”

Chairman of the committee, Farooq Sattar, echoed the call for greater scrutiny. “At one time, PIA was a national pride,” he lamented, promising to raise the issue of an audit in parliament. Yet, he acknowledged the urgent need to proceed with privatization to stem further losses. He added, “We cannot hold it back [its privatisation], as more delay leads to more losses.”

Concerns about international interest in the privatisation process were also addressed. Paul revealed that while some foreign investors are participating, they are doing so in consortiums with local players. On the contentious issue of employee retention, Sattar suggested extending the retention period beyond three years, but Paul cautioned that such demands could lower the sale price.

The meeting also touched upon other privatisation initiatives, including the Roosevelt Hotel in New York. He added that the government has appointed Jones Lang Lasalle Americas Inc. (JLL), a Chicago-based real estate management firm, as the financial adviser to explore transaction options, ranging from a long-term lease to an outright sale or joint venture. JLL’s findings will be reviewed by the CCoP on August 28, 2024, before the government proceeds with calling for expressions of interest (EoIs) from investors.

Additionally, the committee discussed the sale of House Building Finance Company Limited (HBFCL) to Pakistan Mortgage Refinance Company (PMRC), a deal approved by the CCoP and the federal cabinet in July 2023. The transaction is nearing completion, though some members expressed reservations about privatizing a profitable entity.

A member inquired why the Bangladeshi company, which had initially expressed interest in the entity, later withdrew. The Managing Director of HBFC Imran Ahad explained to the panel that there was no specific issue but suggested that the decision was likely influenced by the prevailing macroeconomic situation in the country.

For the past 20 years, loan recovery has been a significant challenge for the company, leading to financial losses. However, over the last eight years, the company has successfully reduced its non-performing loans (NPLs) or bad loans to the lowest level, now accounting for just 17 percent of the total loan portfolio.

Farooq Sattar, after hearing from the MD of the company said that HBFCL is a profitable entity not reliant on government funds, called for a review of the privatization plan. “We do not say to stop its privatization,” Sattar clarified, advocating for further discussions with the CCoP to ensure the government’s objectives align with broader economic interests.


The News
 
PIA bidding likely to conclude in a month

The government has imposed conditions for the potential buyer of state-owned Pakistan International Airlines (PIA), barring the investor from reselling the company in the first three years after its acquisition and requiring it to induct 20 aircraft into the fleet.

Talking to The Express Tribune, Arif Habib, Chairman of Arif Habib Corporation, one of the pre-qualified bidders for the airline, said the government's business plan after the privatisation of PIA showed that the buyer could not resell it for at least three years.

Earlier, while discussing the business plan with a group of journalists, Habib said the new buyer would expand PIA's fleet by adding at least 20 aircraft.

At present, the air carrier is managing a fleet of 34 long- and short-haul airplanes. PIA owns 20 aircraft while the remaining have been acquired on dry lease. Besides, the airline has a workforce of 10,323 employees, meaning an average of 304 workers for each airplane.

He projected that the potential buyer would prefer to purchase 75% of PIA stake to gain majority control over the airline.

Habib, who heads the group of companies that spans different sectors including fertiliser, cement and steel manufacturing, expressed hope that the PIA bidding process would be concluded in less than a month by October 1, 2024.

He highlighted that PIA's major issue in the past had been its debt and interest payments. Of the total debt of Rs800 billion, about Rs600 billion has been put on the balance sheet of a newly created holding company while the buyer will be responsible for repaying the remaining Rs200 billion.

Habib pointed out that most of PIA's debt was owed to the Federal Board of Revenue (FBR) and the Civil Aviation Authority (CAA). "It is crucial that the buyer is given a reasonable time frame to repay the debt. Demand for immediate repayment could adversely affect the price."

He said the government had yet to suggest the terms for the repayment of debt worth Rs200 billion to the potential bidders.

He noted that the unresolved debt issue might make potential buyers wary over fears that the switch could be turned off any moment. When the airline was under government control, institutions always provided some leeway.

While PIA was operationally viable, Habib said, if the debt and employees-related issues were resolved after takeover, the airline could quickly turn around and start making profit.

He floated an idea recently, asking the government to invest the privatisation proceeds in the national flag carrier instead of using them for other purposes. "This will fix the airline's issues soon and help make profit in future."

While sharing the financial performance of the airline, the Ministry of Aviation apprised the National Assembly Standing Committee on Aviation in July that PIA had posted an operational profit of Rs3.187 billion for January-December 2023, adding, however, that the net loss for the period was Rs103.90 billion.

Apart from PIA's losses and liabilities, of which Rs628.5 billion had already been transferred to PIA Holding Company to facilitate the privatisation process, the committee deliberated on the functioning of the Aviation Division and its attached departments.

EXPRESS TRIBUNE
 

PIA’s ERP system malfunctions, severely affecting operations​


Pakistan International Airlines (PIA) operations across the country have been severely disrupted after a sudden technical malfunction in the airline’s Enterprise Resource Planning (ERP) system.

The ERP system is crucial for managing all aspects of PIA’s operations.

Sources report that the ERP system malfunctioned early this morning, causing a complete shutdown of all administrative tasks.

The source of the technical glitch is currently being investigated.

PIA’s IT department is working to resolve the issue and restore the ERP system to full functionality.

english.aaj.tv

PIA’s ERP system malfunctions, severely affecting operations

The source of the glitch is being affected
english.aaj.tv
 
FearlessRoar said:

PIA’s ERP system malfunctions, severely affecting operations​


Pakistan International Airlines (PIA) operations across the country have been severely disrupted after a sudden technical malfunction in the airline’s Enterprise Resource Planning (ERP) system.

The ERP system is crucial for managing all aspects of PIA’s operations.

Sources report that the ERP system malfunctioned early this morning, causing a complete shutdown of all administrative tasks.

The source of the technical glitch is currently being investigated.

PIA’s IT department is working to resolve the issue and restore the ERP system to full functionality.

english.aaj.tv

PIA’s ERP system malfunctions, severely affecting operations

The source of the glitch is being affected
english.aaj.tv
Click to expand...
This article is more comedy than anything.

- “Complete shutdown of administrative tasks” hahaha no PIA employee does anything anyways
- “PIA’s IT Department” this is news to everyone.. these guys actually have an IT department?
- “operations across the country have beens severely disrupted” they have been disrupted for the last 20 years, I doubt anyone is going to notice
 
PIA privatisation bid scheduled for October 1

The privatisation of Pakistan International Airlines (PIA) is moving forward, with the bid process scheduled to take place on October 1, 2024.

This development comes after Federal Minister for Investment Board, Communications, and Privatisation Abdul Aleem Khan chaired a crucial meeting of the Privatization Commission Board, where the privatisation process for Pakistan International Airlines (PIA) was a key topic.

According to the Ministry, the bid for PIA’s privatisation is set to take place on October 1, 2024.

During the meeting, the board reviewed the current status of the privatization efforts and discussed recommendations from the financial advisor regarding necessary changes to the qualifications for potential bidders.

The Privatization Commission has pre-qualified six bidders for the process. Among them are Fly Jinnah, a consortium led by YB Holdings Pvt Ltd, and Airblue Limited, along with another consortium led by Pak Ethanol Pvt Ltd. Arif Habib Corporation Limited and Blue World City have also made the list of interested parties.


Samaa TV
 

Bidding for PIA to be held on Oct 31​

ISLAMABAD: The bidding process of loss-making Pakistan International Airlines Corporation Ltd (PIACL), the first state-owned entity in line for divestment under the policy framework, is now facing snags and has been postponed for a month.

Though there is no official announcement from the Privatisation Commission on postponing the bidding process scheduled to be held on Oct 1, Secretary Privatisation Usman Akhtar Bajwa told Dawn that the bidding date has now been moved to Oct 31 as the bidders wanted more time before taking part in the process.

The Privatisation Commission prequalified six bidders — Fly Jinnah, a consortium led by YB Holdings (Pvt) Ltd, Airblue Ltd, a consortium led by Pak Ethanol (Pvt) Ltd, Arif Habib Corporation Ltd and Blue World City.

A week ago, the Privatisation Commission board, chaired by Privatisation Minister Abdul Aleem Khan, considered the recommendation concerning the permitted changes under the terms of the ‘Request for Statement of Qualification (RSOQ)’.

Aleem Khan has said that PIACL offers a perfect opportunity for its buyers to earn a profit, given that the entity has excellent potential and only requires fresh investment.

Sources in the Privatisation Commission say the bidders are final, and they can make no change in their consortiums now.

The reserve/floor price will be finalised and approved by the federal cabinet before the bidding. The cabinet will also finalise what percentage of the bid will be paid to the government and what percentage will be invested back in PIACL as a rights issue.

Senior officials of the Privatisation Commission informed the National Assembly Standing Committee on Privatisation that the process of privatising PIA has now reached its concluding stage since investor preparations for bidding are nearing completion. Issues like successful bidders’ investment in PIA to lift the airlines to the level of regular operating airlines and the current ban on PIA operations in Europe are some concerns of potential bidders.

The privatisation secretary has also informed the standing committee that upon completion of the PIA ‘Buy-side due Diligence’, the bidding process will be shown on live media after the approval of the cabinet.

PIACL incurred a loss of Rs75 billion during 2023 while its liabilities increased to Rs825bn, with total assets amounting to Rs161bn.

Source: The Express Tribune
 
Pakistan delays bidding for national airline to Oct 31

The bidding for Pakistan's national airline has been delayed to Oct. 31, a spokesman for the privatisation ministry said on Tuesday.

A Pakistani parliamentary committee of privatisation had earlier been informed that Pakistan International Airlines (PIA) would go under the hammer on Tuesday.

The spokesman said the bidding will now take place on Oct. 31 and the date has been approved by the ministry.

Two officials at the ministry had earlier told Reuters that bidding was delayed because the bidders had wanted more time to evaluate terms and conditions for the auction.

Six parties have been pre-qualified for the bidding, which included Fly Jinnah, Airblue Ltd, a consortium led by Pak Ethanol (Pvt) Ltd, a consortium led by YB Holdings (Pvt) Ltd, Arif Habib Corporation Ltd and Blue World City.

Pakistan's government has previously said it would sell between 51-100 per cent of the loss-making airline as part of reforms urged by the International Monetary Fund (IMF).


www.channelnewsasia.com

Pakistan delays bidding for national airline to Oct 31

ISLAMABAD :The bidding for Pakistan's national airline has been delayed to Oct. 31, a spokesman for the privatisation ministry said on Tuesday.A Pakistani parliamentary committee of privatisation had earlier been informed that Pakistan International Airlines (PIA) would go under the hammer on...
www.channelnewsasia.com www.channelnewsasia.com
 
Minister announces new date for PIA privatisation

Finance Minister Muhammad Aurangzeb has reaffirmed the government’s commitment to privatising Pakistan International Airlines (PIA) and three power distribution companies (Discos) before the end of 2024.

In a recent interview with a private channel, Aurangzeb said that the incumbent government will complete the privatisation of the national carrier along with three power distribution companies (Discos) before 2024 culminates.

The privatization of PIA, initially set to conclude by October 1, has been postponed to October 31 due to low bidder interest, ongoing court cases, aging fleet issues, and civil aviation concerns.


arynews.tv

Minister announces new date for PIA privatisation

Finance Minister Muhammad Aurangzeb has reaffirmed the government's commitment to privatising Pakistan International Airlines (PIA) and three power
arynews.tv arynews.tv
 
PIA privatization: Bidders demand quick action against employees

As the government proceeds with the privatization of Pakistan International Airlines (PIA), new conditions from potential buyers have emerged related to airline’s employees, ARY News reported.

During a Senate Privatization Committee meeting chaired by Senator Talal Chaudhry, it was revealed that companies interested in acquiring PIA are requesting significant changes.

Key among the new demands is the immediate dismissal of all employees, alongside the acquisition of 76 percent of PIA’s shares, with the government responsible for clearing tax payments.

The bidders also requested an extension on the date for completing due diligence, indicating that the privatization process could be delayed.

The Privatization Commission sought to negotiate terms that would protect employees from layoffs for at least two to three years.

However, the bidders have reportedly refused to commit to this, expressing reluctance to retain employees or cover pension obligations.

Despite four pre-bid meetings, there is still uncertainty over taxes and the future of PIA’s workforce.


arynews.tv

PIA privatization: Bidders demand quick action against employees

ISLAMABAD: As the government proceeds with the privatization of Pakistan International Airlines (PIA), new conditions from potential buyers have emerged
arynews.tv arynews.tv
 
Bidders reluctant to retain PIA staff

Six pre-bidding parties interested in acquiring the Pakistan International Airlines (PIA) seem hesitant to keep the existing workers of the national flag career and have also raised concerns on tax issues, The News reported, citing officials from the Privatisation Commission.

The remarks came during a session of the Senate Standing Committee on Privatisation on Thursday, where Chairman Tallal Badar questioned the reasons for the postponement of financial bidding initially scheduled for October 1. The bidding has now been rescheduled for October 31.


www.geo.tv

Bidders reluctant to retain PIA staff

Bidding parties seek clarification on service and pensions of staff.Panel chairman says PIA privatisation critical issue for government.Official says auction date for PIA would not be extended further.ISLAMABAD: Six pre-bidding parties...
www.geo.tv www.geo.tv
 
Cricket Warrior said:
Bidders reluctant to retain PIA staff

Six pre-bidding parties interested in acquiring the Pakistan International Airlines (PIA) seem hesitant to keep the existing workers of the national flag career and have also raised concerns on tax issues, The News reported, citing officials from the Privatisation Commission.

The remarks came during a session of the Senate Standing Committee on Privatisation on Thursday, where Chairman Tallal Badar questioned the reasons for the postponement of financial bidding initially scheduled for October 1. The bidding has now been rescheduled for October 31.


www.geo.tv

Bidders reluctant to retain PIA staff

Bidding parties seek clarification on service and pensions of staff.Panel chairman says PIA privatisation critical issue for government.Official says auction date for PIA would not be extended further.ISLAMABAD: Six pre-bidding parties...
www.geo.tv www.geo.tv
Click to expand...
Why will anyone buy the airlines and not able to fire the useless staff?
 
Bidders seek full ownership of PIA amid looming privatisation

Days after Finance Minister Muhammad Aurangzeb reassured of Pakistan International Airlines' (PIA) privatisation in the ongoing year, the bidders aiming to acquire interests in the national carrier have now demanded full ownership of the airline, The News reported on Tuesday.

With concerns over fleet age, financial liabilities, and operational hurdles putting the future of the sale in doubt, the six pre-qualified bidders, initially enticed by a 60% stake offer, now want full control of the PIA.

The revelation follows the publication's report highlighting the bidders' reluctance regarding retaining the existing workers along with tax-related concerns.

Last month, the country's long-awaited bid to privatise its beleaguered national carrier was postponed until October 31. The deferment came after the privatisation process was extended to October 1 before that.

The Privatisation Commission, in a parliamentary panel meeting last week, informed that it plans to sell 76% of PIA's shares. But, the potential bidders say the government has not officially notified them of this new proposal, one of the potential bidders told the publication on Monday.

The pre-qualified bidders argue that without 100% ownership, the risks outweigh the potential rewards. The financial burden of overhauling the airline's ageing fleet, including the planned retirement of 18 wide-body aircraft over the next two years, looms large.

The situation is further complicated by the fact that PIA's smaller planes are leased, meaning any new investor would face the daunting task of rebuilding the airline’s fleet and operations almost from scratch.

The bidders have hesitated at the government's $500 million investment requirement for the replacement of these retiring aircraft, insisting that such a commitment is impossible without total control of the airline.

"Without full management and profit-loss control, we cannot justify these investments," said bidders.

Adding to the bidders' unease are the risks associated with financing and insurance for PIA’s debt-laden operations.

PIA is currently saddled with approximately Rs200 billion in liabilities. Potential buyers will need to secure bank loans to finance their stake, which they argue is unfeasible without full ownership.


www.geo.tv

Bidders seek full ownership of PIA amid looming privatisation

Bidders say risks outweigh rewards without 100% ownership.Cannot justify $500mn investment without full management.National carrier is burdened with around Rs200 bn liabilities.ISLAMABAD: Days after Finance Minister Muhammad Aurangzeb...
www.geo.tv www.geo.tv
 
Final auction for PIA to be on Oct 30, NA told

This was stated by Parliamentary Secretary for Communication Gul Asghar Khan in the National Assembly while responding to the call attention notice of Pakistan People’s Party’s (PPP) Sharmila Sahiba Faruqui.

Gul Asghar Khan said the PIA privatisation is a lengthy process conducted under the elaborate structure of privatisation.

“The privatisation process was initiated in February 2024 and would be finalised on October 30th,” he added.

The parliamentary secretary for communication said the process involved different institutions including the Privatisation Commission Board chaired by the Minister and the Secretary Privatisation Commission is serving as its secretary.

The PIA’s privatisation decision, he said was approved by the Cabinet Committee on privatization.

“The PIA assets have been parked separately as its operational assets have been separated whereas the final auction will be held under PIA Corporation on October 30th,” he said.

As the government proceeds with the PIA privatisation, new conditions from potential buyers have emerged related to airline’s employees.

During a Senate Privatisation Committee meeting chaired by Senator Talal Chaudhry, it was revealed that companies interested in acquiring PIA are requesting significant changes.

Key among the new demands is the immediate dismissal of all employees, alongside the acquisition of 76 percent of PIA’s shares, with the government responsible for clearing tax payments.

The bidders also requested an extension on the date for completing due diligence, indicating that the privatization process could be delayed.

arynews.tv

Final auction for PIA to be on Oct 30, NA told

ISLAMABAD: The final auction for privatisation of the state-owned Pakistan International Airlines (PIA) Corporation would be held on 30th October, ARY
arynews.tv arynews.tv
 
Govt aims to privatise PIA, outsource Islamabad airport in November: Aurangzeb

Pakistan is hoping to finalise both the delayed privatisation of Pakistan International Airlines (PIA) and the outsourcing of Islamabad’s international airport in November, Finance Minister Muhammad Aurangzeb has said.

Muhammad Aurangzeb spoke to AFP at the World Bank’s headquarters in Washington, where he is attending the annual meetings of the International Monetary Fund (IMF) and the World Bank.

During a previous interview with AFP in April, Aurangzeb had said he hoped the privatisation of state-owned PIA could be completed by June 2024.

Speaking on Wednesday, the finance minister said the five-month delay was down to two factors: ensuring macroeconomic stability, and doing the proper due diligence of the interested parties.

“The reality is, when any foreign investor comes in, or even the local investor, who are going to put in a substantial amount of money, they want to ensure that the foundation is there,” he said, referring to macroeconomic factors.

Aurangzeb noted that potential bidders for both PIA and Islamabad airport also required scrutiny, another factor in the delay.

“Therefore it’s ultimately the cabinet which approved the extension in the timelines so people can do their due diligence before they make these submissions,” he said.

Brink of default

Aurangzeb said Pakistan had been behind on existing profit and dividend repayments when the current government took office, and had taken steps to remedy that after making progress on macroeconomic stability.

The country came to the brink of default last year as the economy shriveled amid political chaos following catastrophic 2022 monsoon floods and decades of mismanagement, as well as a global economic downturn.

Inflation peaked at 38 per cent, but has since dropped to less than seven pc, after the central bank maintained sky-high interest rates, amid other government tightening measures, including import bans to preserve foreign exchange.

Last month, the IMF approved a $7 billion loan, Pakistan’s 24th such payout from the multilateral lender since 1958.

Aurangzeb touted progress on the country’s current account deficit and the stabilisation of the rupee, which has depreciated against the US dollar by about 65pc since 2020.

“In May and June on the back of this macroeconomic stability and building up on our reserves, we paid more than $2bn to our existing international investors,” he said.

Pakistan’s gross public debt currently stands at 69pc of GDP, according to the IMF, or roughly $258bn.

‘Saturation point’

Alongside privatising state-owned enterprises (SOEs), Pakistan’s IMF deal also rests on increasing its tax base, and reforming of the country’s power sector.

Aurangzeb told AFP there was a common theme between all three major issues.

“Tax, power, SOE: There’s leakage, there’s theft, there’s corruption, right?” he said. “And we have to deal with all of that.”

But he dismissed media reports that the government was not serious about broadening its tax base, saying that the tax take had risen by 29pc in the last fiscal year, which overlapped with a prior caretaker government, and was targeted to rise by a further 40pc in the current fiscal year.

In a nation of more than 240 million people where most jobs are in the informal sector, only 5.2m filed income tax returns in 2022.

“People who are not paying up, they need to start paying for the simple reason that we have reached a saturation point of the people who are paying,” he said.

“The salaried class, the manufacturing industry, reached a saturation point. And this cannot go forward,” he added.

The government was also committed to doing a better job of taxing certain sectors of the economy, he said, naming real estate, retail, retail distributors, and agriculture.

DAWN NEWS
 
‘Only one bid for stake in PIA’

THE government has received only one bid for the privatisation of Pakistan International Airlines (PIA), Bloomberg reported on Tuesday.

A total of six consortiums had qualified to bid for the loss-making entity. However, five of them stayed away from the process.

The sole bidder has deposited “earnest money” for the transaction with the Privatisation Commission by Tuesday’s deadline, Ahsan Ishaq, spokesman for the Privatisation Ministry told Bloomberg, but didn’t disclose the name of the interested party.

Earnest money is deposited by buyers to demonstrate their good faith or seriousness to complete the purchase.

Earlier, the government had shortlisted Airblue Ltd., Arif Habib Corporation Ltd., Air Arabia’s Fly Jinnah, Y.B. Holdings Pvt, Pak Ethanol Pvt. and real estate consortium Blue World City to bid for a majority stake in the national carrier.

The government initially planned to privatise the airline by June, but subsequent delays pushed the deadline to October.

DAWN NEWS
 
PIA privatization bid to ‘take place’ tomorrow in Islamabad

Preparations for the bidding process have been finalized at a private hotel in the capital.

Of the six potential bidders, only the Blue World City consortium has submitted an advance payment, confirmed by sources from the Privatization Commission.

Both the bid submission and opening for Pakistan International Airline’s purchase are set to occur on the same day, as per aviation sources.

The privatization process will adhere strictly to the regulatory framework and guidelines, ensuring full compliance with legal requirements, the sources added.

As the government proceeds with the PIA privatisation, new conditions from potential buyers have emerged related to airline’s employees.

During a Senate Privatisation Committee meeting chaired by Senator Talal Chaudhry, it was revealed that companies interested in acquiring PIA are requesting significant changes.

Key among the new demands is the immediate dismissal of all the employees, alongside the acquisition of 76 percent of PIA’s shares, with the government responsible for clearing tax payments.

The Privatization Commission sought to negotiate terms that would protect employees from layoffs for at least two to three years.

However, the bidders have reportedly refused to commit to this, expressing reluctance to retain employees or cover pension obligations.

The privatization process, now set for October 31, has drawn criticism for the lack of a clear plan to safeguard employees.

arynews.tv

PIA privatization bid to 'take place' tomorrow in Islamabad

The final bidding process for the privatization of Pakistan International Airlines (PIA) is scheduled to take place tomorrow (Thursday) in Islamabad, ARY
arynews.tv arynews.tv
 

PIA receives only Rs10bn bid for stake from lone bidder​


The Pakistan International Airline (PIA) has received a Rs10 billion bid from lone bidder for a stake against the minimum price of Rs85 billion, set by the federal cabinet.

The development comes as Prime Minister Shehbaz Sharif's administration is looking to offload a 51-100% stake in debt-ridden airline to raise funds and reform bleeding state-owned enterprises as envisaged under a $7 billion International Monetary Fund (IMF) programme.

The bidding process was previously deferred by one month and was rescheduled from October 1 to October 31 (today).

The government had pre-qualified six groups in June, but only one — real estate development company Blue World City — met a Tuesday deadline to submit final documents to participate in the process.

Officials from three groups that chose not to bid told Reuters on condition of anonymity that there were concerns about the government's ability to stand by agreements made for the flag carrier in the long term.

One executive voiced concern about policy continuity once a new government came in. The government of Prime Minister Shehbaz Sharif has relied on a coalition of disparate political parties.

The disposal of PIA is a step former governments have steered away from as it has been highly unpopular given the number of layoffs that would likely result from it.

Underpinning these concerns over policy continuity and honouring contracts was the government's termination of power purchase contracts with five private companies earlier this month, as well as the process of re-negotiating other sovereign guaranteed pacts.

Changes in Pakistan's decade-old agreements with private IPP projects, largely financed by foreign lenders, to address chronic power shortages, "raises the risk of investing as well as doing business in Pakistan, even in the presence of sovereign contracts as well as guarantees," said Sakib Sherani, an economist who heads private firm Macro Economic Insights.

Other concerns raised by potential bidders included inconsistent government communication, unattractive terms and taxes on the sector, in addition to PIA's legacy issues and reputation.

www.thenews.com.pk

PIA receives only Rs10bn bid for stake from lone bidder

ISLAMABAD: The Pakistan International Airline has received a Rs10 billion bid from lone bidder for a stake against the minimum price of Rs85 billion, set by the federal cabinet. The...
www.thenews.com.pk www.thenews.com.pk
 
PIA bidding set for today with single buyer

The bidding for the privatisation of Pakistan International Airlines (PIA) is scheduled for today (Thursday), with reports suggesting that only one of the six pre-qualified bidders has submitted the required earnest money to participate in the process.

The Privatisation Commission had initially pre-qualified six bidders, including Fly Jinnah, a consortium led by YB Holdings (Pvt) Ltd, Airblue Ltd, a consortium led by Pak Ethanol (Pvt) Ltd, Arif Habib Corporation Ltd, and Blue World City.

After extensive review, the board of the Privatisation Commission shortlisted these companies based on technical, financial and documentary requirements, inviting them to proceed with the next stage of the bidding process to start buy-side due diligence.

The successful bidder will be eligible to acquire between 51pc and 100pc of PIA’s share capital, along with management control.


www.dawn.com

PIA bidding set for today with single buyer

Successful bidder will be eligible to acquire between 51pc, 100pc of PIA’s share capital, along with management control.
www.dawn.com
 
scratch that, more like $40million.

There are houses that are expensive in silicon valley
 
PIA privatisation: Khyber Pakhtunkhwa govt ‘willing’ to make highest bid

According to details, the Khyber Pakhtunkhwa Investment Board wrote to Federal Minister for Privatisation Abdul Aleem Khan, expressing its intention to submit a bid.

The letter was written on directives of Chief Minister Ali Amin Gandapur and read that the PIA is a national asset of immense importance. “The Khyber Pakhtunkhwa government is willing to offer a better deal than the Blue World City,” the letter read.

The Privatisation Ministry announced on Thursday that only one bid of Rs 10 billion for a 60% share in the national flag carrier had been received during the final bidding process for the PIA privatisation.

Only the real estate company Blue World City entered the bidding process, submitting an offer that was less than the government-imposed minimum price of Rs 85 billion, despite the government having pre-qualified six companies in June.

As part of a $7 billion International Monetary Fund program, Pakistan wants to sell 51–100% of the debt-ridden PIA in order to raise money and overhaul state-owned businesses.

The bidder was urged to match the minimum bid, according to the Privatization Commission. Saad Nazir, the chairman of Blue World City, nevertheless, maintained its offer. “We wish the government all the best if they don’t want to accept our bid,” he said.

Earlier during a Senate Privatisation Committee meeting chaired by Senator Talal Chaudhry, it was revealed that companies interested in acquiring PIA are requesting significant changes.

Key among the new demands is the immediate dismissal of all the employees, alongside the acquisition of 76 percent of PIA’s shares, with the government responsible for clearing tax payments.

arynews.tv

PIA privatisation: Khyber Pakhtunkhwa govt 'willing' to make highest bid

PESHAWAR: The Khyber Pakhtunkhwa government expressed interest in participating in the privatisation bid for Pakistan International Airlines (PIA), ARY
arynews.tv arynews.tv
 
So KPk govt interested in buying PIA, unfortunately not possible because a group led by Ishaq Dar' son and other construction group led by 2x R Gen's are the front runners for this at salvage value.
IMG-20241101-WA0011.jpg
 
Air Punjab?: Maryam Nawaz advises Nawaz Sharif to acquire PIA

In a statement issued here, Nawaz Sharif said, “Maryam sought advice from me, asking if we should take over the PIA and make it a brand new airline,” The PML-N president said that Maryam Nawaz suggested giving a ‘brand new airline’ to Pakistan named ‘Air Punjab’.

Nawaz Sharif said that he asked the Punjab Chief Minister to discuss the proposal with others as well. “The rebranded airline could connect major cities like Karachi, Lahore, Peshawar, and Quetta directly to New York, London, Tokyo, and Hong Kong,” Nawaz Sharif.

“I think matters related to PIA are being discussed.”

Nawaz Sharif also expressed disappointment over the current state of PIA, saying that certain individuals have contributed to its downfall. “Unfortunately, those who ruined PIA are among us,” he added.

Nawaz Sharif specifically mentioned a person who was a minister during the Pakistan Tehreek-e-Insaf (PTI) government and added that the then minister accused PIA pilots of holding fake licenses.

“Although those were baseless accusations, but I question whether the issue should be discussed publicly or not?,” the PML-N president stated.

Nawaz Sharif’s statement came a day after the Khyber Pakhtunkwa government expressed interest in participating in the privatisation bid for PIA.

The Khyber Pakhtunkhwa Investment Board on November 1 wrote to Federal Minister for Privatisation Abdul Aleem Khan, expressing its intention to submit a bid.

The letter was written on directives of Chief Minister Ali Amin Gandapur and read that the PIA is a national asset of immense importance. “The Khyber Pakhtunkhwa government is willing to offer a better deal than the Blue World City,” the letter read.

The Privatisation Ministry announced on Thursday that only one bid of Rs 10 billion for a 60% share in the national flag carrier had been received during the final bidding process for the PIA privatisation.

Only the real estate company Blue World City entered the bidding process, submitting an offer that was less than the government-imposed minimum price of Rs 85 billion, despite the government having pre-qualified six companies in June.

arynews.tv

Air Punjab?: Maryam Nawaz advises Nawaz Sharif to acquire PIA

LONDON: Punjab Chief Minister (CM) Maryam Nawaz advised her father and Pakistan Muslim League-Nawaz (PML-N) President Nawaz Sharif to buy the Pakistan
arynews.tv arynews.tv
 
FearlessRoar said:
Air Punjab?: Maryam Nawaz advises Nawaz Sharif to acquire PIA

In a statement issued here, Nawaz Sharif said, “Maryam sought advice from me, asking if we should take over the PIA and make it a brand new airline,” The PML-N president said that Maryam Nawaz suggested giving a ‘brand new airline’ to Pakistan named ‘Air Punjab’.

Nawaz Sharif said that he asked the Punjab Chief Minister to discuss the proposal with others as well. “The rebranded airline could connect major cities like Karachi, Lahore, Peshawar, and Quetta directly to New York, London, Tokyo, and Hong Kong,” Nawaz Sharif.

“I think matters related to PIA are being discussed.”

Nawaz Sharif also expressed disappointment over the current state of PIA, saying that certain individuals have contributed to its downfall. “Unfortunately, those who ruined PIA are among us,” he added.

Nawaz Sharif specifically mentioned a person who was a minister during the Pakistan Tehreek-e-Insaf (PTI) government and added that the then minister accused PIA pilots of holding fake licenses.

“Although those were baseless accusations, but I question whether the issue should be discussed publicly or not?,” the PML-N president stated.

Nawaz Sharif’s statement came a day after the Khyber Pakhtunkwa government expressed interest in participating in the privatisation bid for PIA.

The Khyber Pakhtunkhwa Investment Board on November 1 wrote to Federal Minister for Privatisation Abdul Aleem Khan, expressing its intention to submit a bid.

The letter was written on directives of Chief Minister Ali Amin Gandapur and read that the PIA is a national asset of immense importance. “The Khyber Pakhtunkhwa government is willing to offer a better deal than the Blue World City,” the letter read.

The Privatisation Ministry announced on Thursday that only one bid of Rs 10 billion for a 60% share in the national flag carrier had been received during the final bidding process for the PIA privatisation.

Only the real estate company Blue World City entered the bidding process, submitting an offer that was less than the government-imposed minimum price of Rs 85 billion, despite the government having pre-qualified six companies in June.

arynews.tv

Air Punjab?: Maryam Nawaz advises Nawaz Sharif to acquire PIA

LONDON: Punjab Chief Minister (CM) Maryam Nawaz advised her father and Pakistan Muslim League-Nawaz (PML-N) President Nawaz Sharif to buy the Pakistan
arynews.tv arynews.tv
Click to expand...
And then Maryam awoke up from vet dream.
What is this a province to purchase a state asset.
 

Provinces welcome to bid for PIA ownership: Privatisation minister​


Federal Minister for Privatisation, Abdul Aleem Khan, has said the government has no objection if any provincial administration wishes to acquire Pakistan International Airlines (PIA).

He further added that provincial ownership could potentially lead to profitability for the struggling national carrier.

Speaking at a press conference in Lahore, Khan explained that privatisation plans for PIA had been established prior to his appointment, emphasising his mandate as focused on facilitating the airline’s sale, not on reforming its structure.

“The framework for PIA’s privatisation was set before I assumed office, with a deficit of Rs830 billion ($2.9 billion). Changing this framework was beyond my authority,” he stated.

In a sharp critique, Khan noted the extensive mismanagement PIA has faced across various administrations.

“Those who contributed to PIA’s ruin should reflect on their actions,” he remarked, citing a collective failure across different political tenures.

He confirmed that the federal government would not object if any provincial government stepped forward with an acquisition proposal.

“Whether it’s the governments of KP, Punjab, or Sindh, we welcome any provincial interest in buying PIA. If today, Punjab, KP, Sindh, and Balochistan each took a stake, PIA could actually become profitable,” he asserted.

Khan’s comments follow recent suggestions from former Prime Minister Nawaz Sharif that the Punjab government should consider purchasing PIA.

Khyber-Pakhtunkhwa has also formally expressed interest in the acquisition already, proposing to outbid private sector offers to retain the airline under government control.

The expression of interest from Punjab and K-P followed the final bidding process for the privatisation of Pakistan International Airlines (PIA), which garnered only one bid of Rs10 billion for a 60% stake, according to the Privatisation Ministry on Thursday.

In June, the government had pre-qualified six groups, but only Blue World City, a real-estate development firm, submitted a bid that fell short of the government's minimum price of Rs85 billion.

Cash-strapped Pakistan aims to sell a 51-100% stake in PIA to generate funds and reform state-owned enterprises as part of a $7 billion International Monetary Fund program.

The Privatisation Commission requested that the bidder meet the minimum price. However, Blue World City Chairman Saad Nazir defended his bid, stating, "We wish the government all the best if they don’t want to accept our bid," during the ceremony.

tribune.com.pk

Provinces welcome to bid for PIA ownership: Privatisation minister Aleem Khan | The Express Tribune

Aleem Khan says if today, Punjab, KP, Sindh, and Balochistan each took a stake, PIA could actually become profitable
tribune.com.pk tribune.com.pk
 
KP stands firm as Punjab backs off on buying PIA

The Punjab government on Monday took a U-turn on its consideration to acquire Pakistan International Airlines (PIA), while Khyber Pakhtunkhwa (KP) Chief Minister Ali Amin Gandapur decided to go ahead with a plan to outbid the current offer of Rs10 billion by the Blue World City consortium.

The much-anticipated privatisation of PIA hit a standstill last week as the only bid fell Rs75bn short of the government’s expectations. The Blue World City consortium submitted a bid of Rs10bn, far below the minimum price of Rs85.03bn set by the Privatisation Commission.

At a press conference in Lahore, Punjab Information Minister Azma Bokhari said: “The Punjab government has no plans to buy PIA. Mian Nawaz Sharif never said that the Punjab government is planning to purchase PIA.”

However, she questioned the KP government’s consideration of acquiring PIA, given its struggles to pay salaries to its employees.

“The KP government, which does not even have funds to pay salaries to its employees, is dreaming of buying PIA,” Ms Bokhari remarked, adding that it was nothing short of a joke that Punjab Chief Minister Maryam Nawaz would follow KP CM Ali Amin Gandapur in showing interest in PIA purchase.

The KP government, in a surprise move, had offered to acquire the struggling PIA last week, sparking a debate over whether the announcement was a genuine acquisition bid or an attempt to ‘troll’ the federal government.

Later, Nawaz Sharif had said during a media interaction in New York that Maryam Nawaz had sought his counsel on whether the Punjab government should acquire PIA or establish a new airline.

“Maryam proposed that the Punjab government launch a new airline — Air Punjab — and I advised her to proceed with further consultations on the potential acquisition of PIA,” the elder Sharif had said.

“We could introduce a new airline that would offer direct flights from Karachi, Lahore, Peshawar, and Quetta to New York, along with services to London, Tokyo, Hong Kong, and other international destinations.”

However, Ms Bokhari told the presser on Monday that ex-PM Sharif had never said the Punjab government was planning to purchase PIA. But she added: “All Pakistanis want the national flag carrier to improve, and if investors from Karachi are interested in investing in PIA, it’s a positive development.”

Interestingly, federal minister Aleem Khan had also praised the Punjab and KP governments for showing interest in buying PIA. He said the federal government may devise a new framework to clear the Rs200bn liabilities and then “sell a clean PIA” to a private buyer.

“As per the existing framework, around Rs600bn of PIA’s liabilities of over Rs830bn debt have been parked in a holding company while the remaining Rs200bn will be transferred to the private buyer,” the minister said.

Since the ministry for privatisation was criticised for failing to find a potential buyer, Aleem Khan said there were some demands by potential buyers such as zero-GST on purchasing new aircraft, which the government couldn’t accept due to the deal with the IMF.

KP can go to any extent

While talking to the media, KP CM Gandapur insisted his government would go to any length to acquire the national flag carrier, asserting that the provincial government was in a position to buy PIA.

“All other provinces have failed to achieve the targets set by the International Monitory Fund (IMF) but KP has achieved. The province is surplus and has increased the province’s revenue by 44pc,” the chief minister said.

He alleged that the PML-N-led government was not selling but indirectly buying PIA, referring to the Punjab government’s announcement of purchasing the national flag carrier.

The chief minister said that they would not let the country’s name [referring to PIA] sold in exchange for pennies. “We will buy PIA in the same name and will run it as a government property. We will go to any extent during the bidding,” Mr Gandapur added.

The KP CM claimed that overseas Pakistanis hailing from KP were sending him messages that they would “collect charity but will never want someone else to buy PIA”.

On Friday, the KP Board of Investment and Trade (KP-BOIT) sent a letter to Privatisation Minister Aleem Khan, expressing interest in purchasing the national carrier.

Also, the chief minister’s adviser on information and public relations Barrister Muhammad Ali Saif said that the province’s bid was genuine and not politically motivated. “We are interested in acquiring the airline,” Mr Saif told Dawn, adding that the KP government intended to operate PIA professionally.

DAWN NEWS
 
PIA denies selling 10 aircraft engines

PIA spokesperson dismissed the allegations made by the newly elected body of SAEP, describing it as ‘regrettable’.

The spokesperson clarified that there is no truth to the selling of ten aircraft engines at low prices. He added that the engines mentioned are totally “inefficient” and their sale is being conducted through a tender following all standard rules and regulations.

The spokesperson emphasised that the sale of unusable engines is a routine practice in the aviation industry, with full compliance with public procurement laws. The revenue from this sale will be used to purchase spare parts for aircraft.

The spokesperson added that PIA’s pension and provident funds have already been transferred to PIA Holding Company, and all dues and pensions are being paid promptly to both current and retired employees. A hiring freeze is in place at PIA following the Supreme Court’s orders since 2017, except for essential contract positions required to meet SCCP standards.

Earlier on October 31, the final bidding process for the privatisation of PIA attracted just one bid of 10 billion Pakistani rupees ($36 million) for a 60% stake in the national flag carrier.

The government had pre-qualified six groups in June, but only real-estate development company Blue World City participated in the bidding process, placing a bid that is below the government-set minimum price of 85 billion Pakistani rupees.

Pakistan was looking to offload a 51-100% stake in debt-ridden PIA to raise funds and reform state-owned enterprises, as envisaged under a $7 billion International Monetary Fund programme.

The Privatisation Commission said it had asked the bidder to match the minimum bid.

Blue World City Chairman Saad Nazir however stood by its offer. “We wish the government all the best if they don’t want to accept our bid,” he said during the ceremony.

Nazir later told Reuters news agency that it did not make commercial sense to raise their bid.

arynews.tv

PIA denies selling 10 aircraft engines

ISLAMABAD: Pakistan International Airlines (PIA) issued a statement dismissing the claims made by the Society of Aircraft Engineers (SAEP) regarding the
arynews.tv arynews.tv
 

Overseas Pakistani entity offers over Rs1 trillion for PIA acquisition​


An overseas Pakistani group has proposed to acquire Pakistan International Airlines (PIA) for over Rs1 trillion, including a pledge to settle the airline's Rs250 billion debt.

The group, Al Nahang, has reportedly sent a formal offer via email to the ministers of privatisation, aviation, and defence, outlining its vision to revitalise PIA.

In addition to debt repayment, Al Nahang’s proposal promises not to lay off PIA employees and offers a phased plan to double salaries across 30 pay periods.

The group has also presented a comprehensive business plan, which includes adding modern aircraft to PIA’s fleet and developing the airline into a maintenance hub for other carriers.

Search for new PIA CEO begins

The Pakistan International Airlines (PIA) is looking for a new chief executive officer to replace Amir Hayat, who has completed his term at the national flag carrier.

The PIA has placed a advertisement, seeking applications from the suitable candidates with in 15 days. The candidates, between the age of 45-57 years, must have 20 years of experience of running a large corporation or at least 10 years of management experience in the aviation industry.

In response to corruption allegations levelled by Society of Aircraft Engineers of Pakistan (SAEP), Pakistan International Airlines (PIA) attempted to seal the SAEP office.

When PIA Security Department team reached the SEAP office to seal it, engineers rushed to the office and locked the office themselves.

SAEP secretary Owais Khan Jadoon said the administration resorted to cheap tactics over exposing the PIA corruption, adding the PIA team came without written order to seal the office.

On the other hand, PIA spokesperson said that it had written order for sealing SAEP office.

The spokesperson refuted the corruption allegations levelled by SAEP and termed the attitude of the newly elected body of SAEP as deplorable.

He said the PIA is selling the faulty engines of the aircrafts as per rules and regulations, adding it is a routine practice in the aviation industry.

K-P remains in hot pursuit of PIA purchase

Earlier, Khyber-Pakhtunkhwa Chief Minister Ali Amin Gandapur has expressed his determination to go to any extent in his government's bid to purchase Pakistan International Airlines (PIA).

The CM stated that after the purchase, PIA's name would remain unchanged. He issued this statement as he spoke at an event in Nishter Hall.

He emphasised that the people of the province are willing to contribute funds to prevent this national asset from being sold at a bargain price.

Speaking to the media at an event in Peshawar, he mentioned that the province has two helicopters at its disposal and noted that those making grand claims, and publishing large advertisements for their achievements, should read the IMF report.

"Unlike other provinces that failed to meet their targets, Khyber-Pakhtunkhwa has achieved its goals. The province is not in deficit, and presented a balanced budget with revenue up by 44%."

He reiterated that if they purchase PIA, it will continue operating under the same name, Pakistan International Airlines, and remain under government control. "We won't let it be sold off cheaply."

The CM said that the nation now understands the intentions of those in power, who themselves wanted to buy PIA by first moving to sell it.

He promised to prevent this from happening, and added he was willing to go as far as necessary in the bidding process to ensure that the airline remains publicly owned and retains its name.

The CM also mentioned that he is receiving phone calls from people across the province willing to contribute funds to help purchase PIA. He criticised the current leadership, saying they have ruined the system, disregarded the constitution, and created lawlessness.

He announced a rally in Swabi on November 9, where they will pass a resolution, after which they will proceed with a final march. "This time, we will march with resolve, determined to restore the rule of law and the Constitution. He added that with increasing prices of electricity and gas, as well as the additional burden on the public, people risk becoming enslaved if they do not act immediately.

tribune.com.pk

Overseas Pakistani entity offers over Rs125b for PIA acquisition | The Express Tribune

The group also pledge to settle the airline's Rs250 billion debt
tribune.com.pk tribune.com.pk
 
FearlessRoar said:

Overseas Pakistani entity offers over Rs1 trillion for PIA acquisition​


An overseas Pakistani group has proposed to acquire Pakistan International Airlines (PIA) for over Rs1 trillion, including a pledge to settle the airline's Rs250 billion debt.

The group, Al Nahang, has reportedly sent a formal offer via email to the ministers of privatisation, aviation, and defence, outlining its vision to revitalise PIA.

In addition to debt repayment, Al Nahang’s proposal promises not to lay off PIA employees and offers a phased plan to double salaries across 30 pay periods.

The group has also presented a comprehensive business plan, which includes adding modern aircraft to PIA’s fleet and developing the airline into a maintenance hub for other carriers.

Search for new PIA CEO begins

The Pakistan International Airlines (PIA) is looking for a new chief executive officer to replace Amir Hayat, who has completed his term at the national flag carrier.

The PIA has placed a advertisement, seeking applications from the suitable candidates with in 15 days. The candidates, between the age of 45-57 years, must have 20 years of experience of running a large corporation or at least 10 years of management experience in the aviation industry.

In response to corruption allegations levelled by Society of Aircraft Engineers of Pakistan (SAEP), Pakistan International Airlines (PIA) attempted to seal the SAEP office.

When PIA Security Department team reached the SEAP office to seal it, engineers rushed to the office and locked the office themselves.

SAEP secretary Owais Khan Jadoon said the administration resorted to cheap tactics over exposing the PIA corruption, adding the PIA team came without written order to seal the office.

On the other hand, PIA spokesperson said that it had written order for sealing SAEP office.

The spokesperson refuted the corruption allegations levelled by SAEP and termed the attitude of the newly elected body of SAEP as deplorable.

He said the PIA is selling the faulty engines of the aircrafts as per rules and regulations, adding it is a routine practice in the aviation industry.

K-P remains in hot pursuit of PIA purchase

Earlier, Khyber-Pakhtunkhwa Chief Minister Ali Amin Gandapur has expressed his determination to go to any extent in his government's bid to purchase Pakistan International Airlines (PIA).

The CM stated that after the purchase, PIA's name would remain unchanged. He issued this statement as he spoke at an event in Nishter Hall.

He emphasised that the people of the province are willing to contribute funds to prevent this national asset from being sold at a bargain price.

Speaking to the media at an event in Peshawar, he mentioned that the province has two helicopters at its disposal and noted that those making grand claims, and publishing large advertisements for their achievements, should read the IMF report.

"Unlike other provinces that failed to meet their targets, Khyber-Pakhtunkhwa has achieved its goals. The province is not in deficit, and presented a balanced budget with revenue up by 44%."

He reiterated that if they purchase PIA, it will continue operating under the same name, Pakistan International Airlines, and remain under government control. "We won't let it be sold off cheaply."

The CM said that the nation now understands the intentions of those in power, who themselves wanted to buy PIA by first moving to sell it.

He promised to prevent this from happening, and added he was willing to go as far as necessary in the bidding process to ensure that the airline remains publicly owned and retains its name.

The CM also mentioned that he is receiving phone calls from people across the province willing to contribute funds to help purchase PIA. He criticised the current leadership, saying they have ruined the system, disregarded the constitution, and created lawlessness.

He announced a rally in Swabi on November 9, where they will pass a resolution, after which they will proceed with a final march. "This time, we will march with resolve, determined to restore the rule of law and the Constitution. He added that with increasing prices of electricity and gas, as well as the additional burden on the public, people risk becoming enslaved if they do not act immediately.

tribune.com.pk

Overseas Pakistani entity offers over Rs125b for PIA acquisition | The Express Tribune

The group also pledge to settle the airline's Rs250 billion debt
tribune.com.pk tribune.com.pk
Click to expand...
This is a terrible deal 😂 who is behind this group?
 
PIA denies selling 10 aircraft engines

Pakistan International Airlines (PIA) issued a statement dismissing the claims made by the Society of Aircraft Engineers (SAEP) regarding the sale of 10 aircraft engines at cheap prices, ARY News reported.

PIA spokesperson dismissed the allegations made by the newly elected body of SAEP, describing it as ‘regrettable’.

The spokesperson clarified that there is no truth to the selling of ten aircraft engines at low prices. He added that the engines mentioned are totally “inefficient” and their sale is being conducted through a tender following all standard rules and regulations.

The spokesperson emphasised that the sale of unusable engines is a routine practice in the aviation industry, with full compliance with public procurement laws. The revenue from this sale will be used to purchase spare parts for aircraft.

The spokesperson added that PIA’s pension and provident funds have already been transferred to PIA Holding Company, and all dues and pensions are being paid promptly to both current and retired employees. A hiring freeze is in place at PIA following the Supreme Court’s orders since 2017, except for essential contract positions required to meet SCCP standards.


arynews.tv

PIA denies selling 10 aircraft engines

ISLAMABAD: Pakistan International Airlines (PIA) issued a statement dismissing the claims made by the Society of Aircraft Engineers (SAEP) regarding the
arynews.tv arynews.tv
 
Shahid Khaqan suggests govt to accept Rs10 billion bid

Head of Awam Pakistan Party (AWP) and former Prime Minister of Pakistan Shahid Khaqan Abbasi said that the government’s expectation of receiving an Rs85 billion bid for PIA privatisation is unrealistic.

Speaking during ARY News programme ‘Sawal Yeh Hai’, Shahid Khaqan suggested that accepting a Rs10 billion offer would be more practical. He criticised the government’s high valuation for PIA privatisation, saying, “The market does not accept Rs85 billion bid for PIA. In my view, even Rs10 billion is a high price for PIA considering its current structure.”

Criticising the current government, Shahid Khaqan remarked, “This government lacks both mandate and performance. Trying to run the country through haphazard laws is a clear admission of failure.”

Commenting on the role of the current opposition, he said that, the current opposition’s role is ‘ineffective’.


arynews.tv

PIA privatisation: Shahid Khaqan suggests govt to accept Rs10 billion bid

ISLAMABAD: Head of Awam Pakistan Party (AWP) and former Prime Minister of Pakistan Shahid Khaqan Abbasi said that the government's expectation of
arynews.tv arynews.tv
 
Privatisation board rejects bid for PIA, proposes new plan for airline sale

The Privatisation Commission Board of Pakistan has rejected the latest bid for Pakistan International Airlines (PIA) and presented new proposals for the airline's privatisation, which will now be forwarded to the cabinet committee and the federal cabinet for approval.

The decision came during a meeting led by Privatisation Minister Aleem Khan, which reviewed several privatisation initiatives and approved key recommendations.

Addressing the meeting on Wednesday, Khan stressed that all privatisation efforts, including those for PIA, must adhere to legal protocols while prioritising the national interest.

"The final decision on the privatisation of institutions like PIA rests with the cabinet committee," he stated, adding that steps must be taken to enhance future bidding processes.

Khan also directed officials to expedite the privatisation of PIA and other public entities, noting, "We are bound by our oath to undertake whatever actions are necessary for the welfare of the country and its people."

He emphasised the importance of learning from the current PIA privatisation process to improve future efforts. The board also considered significant aspects related to the privatisation of other state-owned projects, marking further steps towards Pakistan's broader privatisation agenda.


tribune.com.pk

Privatisation board rejects bid for PIA, proposes new plan for airline sale | The Express Tribune

New proposals for airline's privatisation will now be forwarded to cabinet committee and federal cabinet for approval
tribune.com.pk tribune.com.pk
 
Aviation committee reveals PIA audit not conducted since 2010

The Parliamentary Committee on Aviation has disclosed that the national airline, Pakistan International Airlines (PIA), has not undergone an audit from 2010 to 2020.

Following this revelation, the committee has requested a detailed explanation for the decade-long absence of audits.

Ramesh Lal stated that former minister Sarwar Khan had severely damaged the organization’s reputation, while the Secretary of Aviation noted that route restrictions would be lifted in the coming months.

The meeting of the National Assembly’s Aviation Committee, chaired by Nawabzada Iftikhar Ahmed Babar, addressed various issues, including allegations against two PIA officials in Bahrain and Birmingham, raised by member Munaza Hassan.

The CEO of PIA confirmed that the country manager, Owais, has been recalled. When committee member Dr. Darshan inquired about reopening PIA’s closed routes, the Secretary of Aviation assured that they are satisfied with the regulatory regime and that restrictions would be lifted soon.

Mahreen Razaq Bhutto questioned who is responsible for the lack of audits over the past decade. Ramesh Lal also asked for the reason behind the absence of audits for ten years.

The Secretary of Aviation confirmed that audits had not been conducted for that period but mentioned that audits were carried out twice during the last four years under the PTI government.


AAJ News
 
Cabinet committee endorses Privatisation Commission’s rejection of Rs10bn bid for PIA stake

The Cabinet Committee on Privatisation (CCOP) has approved the Privatisation Commission’s recommendation to reject the Rs10 billion offer submitted by the sole bidder for a 60 per cent stake in Pakistan International Airlines Corporation Limited (PIACL), it emerged on Friday.

On Wednesday, the Privatisation Commission’s board rejected the sole bid submitted by Blue World City, a real-estate development company, and referred the matter to the Cabinet Committee on Privatisation for further review.

Last month, the final bidding process for a 60pc stake in PIA attracted only one bid — Rs10bn from Blue World City — which fell significantly below the government’s minimum price of Rs85bn.

The government had prequalified six groups in June, but only Blue World City participated in the final bidding process. Due to the huge difference between the expected and actual bids, the commission gave the consortium more time to reconsider its bid. However, Blue World City consortium chairman Saad Nazir kept the price unchanged.

On Thursday, in a meeting chaired by Deputy Prime Minister and Foreign Minister Ishaq Dar, the Committee decided to accept the recommendation of the PC Board and rejected the bid.

“The CCOP reiterated the resolve of the government to divest PIACL through privatisation or G2G mode,” the statement released by the Office of the deputy prime minister read.

The Committee also “noted with satisfaction the assessment of the aviation division on healthy PIACL’s finances”, the statement said.

The meeting was also attended by other members of the Committee, including the ministers of privatisation, industry and food, commerce, power, minister of state of finance and revenue, and federal secretaries of various divisions.

The CCOP also formed a committee led by the minister of state for finance to assess potential transaction options for the privatisation of PIA’s Roosevelt Hotel in the US and determine the appropriate modes based on available legal provisions.

In June last year, the hotel was leased to the New York City Administration for three years against $220m.

The statement also mentioned that the committee had instructed the “resolution of all issues and the finalisation of an agreement for the sale of Services International Hotel before its next meeting.”

DAWN NEWS
 
Minister says govt poised to reopen bidding to push PIA privatisation

Federal Minister for Privatisation Abdul Aleem Khan said on Monday that the government was set to restart the bidding process for the privatisation of the cash-strapped Pakistan International Airlines (PIA) after receiving an underwhelming offer of Rs10 billion from a sole bidder.

Aleem's remarks came during the meeting of the Senate Standing Committee on Privatisation, chaired by Senator Talal Chaudhry, where he briefed members on the PIA privatisation efforts.

He told the meeting that the government was planning to invite fresh expressions of interest (EOIs) after earlier attempts faced hurdles, including a lack of buyer interest and bids falling significantly below the benchmark value.

The government had eyed selling a major share in the national carrier, but investors pulled out, with only Blue World City submitting a bid of Rs10 billion against an envisaged minimum bid of over Rs80 billion.

Finance Minister Muhammad Aurangzeb had termed the failed PIA privatisation move a "setback" for the government but stressed that the International Monetary Fund (IMF) listened to the government on this and that privatisation of SOEs would continue.

The government is pressing for the privatisation of loss-making SOEs not only due to fiscal constraints but also because it is part of the IMF's demand, which has approved a $7 billion loan for Pakistan.


www.geo.tv

Minister says govt poised to reopen bidding to push PIA privatisation

Privatisation minister upbeat on PIA's turnaround.Says national carrier operates profitable routes.Slams FBR for imposing GST on buying aircraft.ISLAMABAD: Federal Minister for Privatisation Abdul Aleem Khan said on Monday that the...
www.geo.tv www.geo.tv
 

Finance ministry blamed for failed PIA bid​

Privatisation Minister Abdul Aleem Khan said on Monday that the lack of cooperation by the Ministry of Finance was the reason behind the failed attempt to sell Pakistan International Airlines (PIA), which did not accept the bidders' rightful demands.

He also blamed the caretaker government for finalising a faulty privatisation transaction structure, where it left behind a Rs45 billion negative equity on the PIA balance sheet despite taking off liabilities of Rs623 billion.

In a statement before the Senate Standing Committee on Privatisation, Aleem Khan said that even the Gulf countries would not buy the "dirt" of PIA as its balance sheet had to be cleaned from the negative equity before selling to either a foreign country or to a private party.

The bidders had demanded exemption from 18% sales tax on the lease of aircraft and writing off additional liabilities of Rs45 billion but the departments did not cooperate and the government did not listen, he said.

PML-N Senator Tallal Badar Chaudhry chaired the committee meeting. The Federal Board of Revenue (FBR) was inflexible and "we could not write off Rs45 billion worth of liabilities without the consent of the finance ministry," said Aleem Khan.

"I recommended the government to accept the bidders' requests but it did not listen," said the privatisation minister.

The government had attempted to sell PIA to a single bidder – a real estate developer – who offered Rs10 billion against the minimum reserve price of Rs85.03 billion, but it failed.

The bidders wanted the government to write off Rs26 billion worth of tax liabilities, Rs10 billion worth of bridge financing by the Civil Aviation Authority to PIA and Rs9 billion in other liabilities, Privatisation Secretary Usman Bajwa told the committee.

As one of the options, the bidders asked that PIA's commercial plot valued at over Rs10 billion should be given to the airline instead of keeping it in a holding company, he added.

Source: The Express Tribune
 
This would be such an embarrassment for any country, and the statements are such a joke.
“Interest is being shown”, yes but when it was open to being bought there wasn’t an interest?
 
SC expresses confidence in govt to effectively carry out PIA privatization

Supreme Court's constitutional bench has rescinded its earlier order to halt the privatization of Pakistan International Airlines (PIA).

During the hearing on the PIA privatization case, Justice Jamal Khan Mandokhail remarked that the court has confidence in the government and expects the privatization process to be carried out effectively and properly.

The Additional Attorney General informed the court that while the PIA administration was previously allowed to hire new professionals, the process was delayed due to the ongoing privatization plans. However, the privatization process is now set to resume.

Additionally, the court lifted the ban on PIA's flight operations. Justice Mandokhail clarified that the Supreme Court had instructed the government to consult the court before proceeding with privatization, asking if the government was adhering to the court’s order.

In response, the Additional Attorney General confirmed that a request had been made to the court to involve it in the process of privatization. Justice Aminuddin Khan noted that the privatization of PIA may now fetch a higher value.

SAMAA
 
Govt set to start fresh round of its PIA privatisation pursuit

The government is set to initiate another process of the national carrier Pakistan International Airlines’ (PIA) privatisation this week.

“The process for the privatisation of PIACL will be started afresh with the hiring of a new Financial Advisor,” an official at the Ministry of Privatisation Commission told Business Recorder on Monday.

The next Privatisation Commission (PC) Board meeting expected this week will give approval for initiating the hiring of the Financial Advisor for PIACL.

“PC Board meeting is (tentatively) schedule for Tuesday.”

Another official involved in the privatisation process seconded the development.

The development comes after the European Commission and European Aviation Safety Agency (EASA) lifted the suspension on the PIA and also issued authorisation to Airblue flights to Europe.

In 2020, the EASA banned the PIA from its most lucrative routes in Europe and Britain after a PIA plane crash in Karachi in 2020 killed nearly 100, followed by a scandal over pilot licenses.

PIA said last week it would resume flights to Europe in January, starting with Paris, after the EU aviation regulator lifted a ban on the national flag carrier.

PIA’s privatisation efforts had been hindered by the EASA ban with potential bidders looking at the airline with reluctance.

In October, Blue World City consortium, only entity to bid for the national flag carrier, refused to match the minimum expectation of the Privatisation Commission of Rs85.03 billion and stuck to its original offer of Rs10 billion for a 60% stake in the PIA, ending the bidding process of the national flag carrier’s privatisation.


www.brecorder.com

Govt set to start fresh round of its PIA privatisation pursuit

The government is set to initiate another process of the national carrier Pakistan International Airlines’ (PIA)...
www.brecorder.com
 
Half of PIA fleet grounded, EU flight resumption at risk

Pakistan International Airlines (PIA) continues to struggle with operational efficiency as several of its aircraft remain grounded due to a shortage of critical spare parts.

Out of the 34 aircraft in PIA's fleet, 17 are still temporarily out of service.

The situation is particularly dire for the airline's Boeing 777 fleet, where 7 out of 12 planes are grounded. Additionally, 7 out of 17 Airbus A320 planes are also non-operational.

The airline's smaller ATR aircraft have not been spared, with only 2 of the 5 aircraft currently active.

The grounded planes have been affected by a lack of essential components, including engines, landing gear, Auxiliary Power Units (APUs), and other vital parts.


tribune.com.pk

PIA struggles with grounded aircraft amid spare parts shortage | The Express Tribune

PIA faces major setbacks with 17 aircraft grounded due to spare parts shortage, leading to financial losses.
tribune.com.pk tribune.com.pk
 
Either way it's a complete mess like most things in Pakistan.

PIA is now beyond repair as their planes and their staff are not trustworthy to fly with.
 

IMF agrees to tax exemptions and other demands for PIA privatisation​


The International Monetary Fund (IMF) has agreed to grant sales tax exemptions and remove equity losses as part of the privatisation process for Pakistan International Airlines (PIA).

According to sources, the buyer of PIA will be granted sales tax exemptions for purchasing or leasing aircraft for both national and international routes. With these tax breaks and the removal of PIA's losses, the bidding value for the airline could increase from Rs250 billion to Rs350 billion.

PIA currently has a debt of around Rs660 billion, which the government has assumed responsibility for and stockpiled under a holding company. Additionally, the proceeds from the privatisation of PIA and the sale of the Roosevelt Hotel will be used to settle the airline’s obligations.

Sources also revealed that the IMF has approved the settlement of PIA’s holding company debt.

For the Roosevelt Hotel sale, a joint venture is expected to be established within six months, with an estimated sale value of up to $one billion. The Prime Minister has also been briefed about the tax exemptions for PIA, the removal of losses, and the joint venture for the Roosevelt Hotel sale.

Initially, the IMF had only approved sales tax exemptions for the purchase or lease of aircraft for international routes. However, after further negotiations, the exemption has also been extended to aircraft purchases or leases for domestic routes.

With the new exemptions, PIA’s leased aircraft could benefit from sales tax relief of up to approximately PKR 8.1 million per month.

Previously PIA continuesd to struggle with operational efficiency as several of its aircraft remain grounded due to a shortage of critical spare parts.

Out of the 34 aircraft in PIA's fleet, 17 are still temporarily out of service.

The situation is particularly dire for the airline's Boeing 777 fleet, where 7 out of 12 planes are grounded. Additionally, 7 out of 17 Airbus A320 planes are also non-operational.

The airline's smaller ATR aircraft have not been spared, with only 2 of the 5 aircraft currently active.

tribune.com.pk

IMF agrees to tax exemptions and other demands for PIA privatisation | The Express Tribune

IMF's approval of tax breaks could boost PIA's bidding value from Rs250B to Rs350B.
tribune.com.pk tribune.com.pk
 
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