ISLAMABAD (PEN) : The federal government has initiated the next phase in the privatization of Pakistan International Airlines (PIA) by issuing a fresh Expression of Interest (EOI), inviting bids for a 51% to 100% stake in the national carrier. This move aims to revitalize PIA and align with broader economic reforms under the International Monetary Fund (IMF) program.
Key Details of the Privatization Process
– Bid Submission Deadline: June 3, 2025
– Non-refundable Application Fee: PKR 1.4 million
– Assets Included: Passenger services, ground handling, cargo operations, flight training, flight kitchen, and engineering services
– Incentives for Buyers: Eligibility for sales tax exemption on the inclusion of new aircraft in the fleet
The government has also addressed previous concerns by transferring nearly all of PIA’s legacy debt onto its own books, aiming to make the airline more attractive to potential investors. This follows a prior failed attempt in 2024, where a sole bid was rejected due to its inadequacy
Strategic Importance of the Privatization
Deputy Prime Minister Ishaq Dar emphasized that privatizing PIA would reduce the financial burden on the national treasury and unlock the airline’s full potential. The government aims to complete the privatization process by December 2025, ahead of the original October deadline
Federal Minister for Privatization, Abdul Aleem Khan, highlighted that the introduction of PIA flights to Europe has made the privatization environment more attractive. The airline is also planning to resume flights to the UK and the United States in the near futureThe government’s proactive steps, including debt restructuring and route expansions, are designed to enhance PIA’s appeal to investors. The successful privatization of PIA is seen as a critical component of Pakistan’s broader economic restructuring efforts.
