ISLAMABAD (Dec 3) – The bidding process of Pakistan International Airlines (PIA) will take place on December 23.
The government’s earlier bid to privatise the entity failed as a $36 million bid from a real estate firm fell short of the $305m floor price, with concerns over debt, staffing, and limited control.
This time, the government is offering full divestment, has scrapped the sales tax on leased aircraft, and is providing limited protection from legal and tax claims. Around 80% of the airline’s debt has been transferred to the state.
The privatisation commission has targeted Rs 86 billion in privatisation proceeds fir current fiscal year. For PIA, in the last round of bidding, 15 percent of the proceeds were going to the government, with the rest staying within the company.
Airblue, Lucky Cement, Arif Habib Group, and Fauji Fertiliser are major bidders for the PIA bid.
The PIA resumed flights to the United Kingdom, more than five years after a ban over a fake pilot licence scandal was lifted in July. Its European flights were resumed in January after a four-year ban.
The talks are underway with the pre-qualified bidders on the share purchase and shareholders’ agreements. Pre-bid qualification talks have been continuing, while approval of the reserve price will be sought from the federal cabinet.
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