By Staff Reporter
ISLAMABAD: The government has extended the deadline for potential buyers to express interest in acquiring Pakistan International Airlines (PIA) to June 13, the Privatisation Ministry said in a statement on Tuesday, as it presses ahead with efforts to offload the long-struggling national flag carrier.
The initial cutoff was June 3, but the ministry’s announcement provides additional time for investors to signal their interest in the carrier. The bidding process is expected to unfold between October and December, marking the government’s second attempt to privatize PIA after a failed effort that cost the national exchequer $4.3 million.
In March, Privatisation and Investment Minister Abdul Aleem Khan said the government would wrap up all steps to privatise PIA by May. The Privatisation Commission has since greenlit a transaction structure for this renewed push, which involves divesting between 51 percent and 100 percent of the airline’s shares.
Yet, a separate ministry statement introduced some confusion, noting that the deadline for “submission on expressions of interest” extends until 4 pm on June 1, an apparent discrepancy with the June 13 date. For now, the earlier date aligns with the ministry’s primary announcement.
PIA’s financial fortunes have shown flickers of improvement. Last month, the airline’s board approved its 2024 financial results, revealing a net profit of Rs2.26 billion, its first in roughly 21 years. The carrier posted an operational profit of Rs3.9 billion and an operating margin exceeding 12 percent, a level “on a par with the performance of any of the best airlines in the world,” a PIA spokesperson then said.
That turnaround stands in stark contrast to PIA’s troubled past. The airline slid into unprofitability in 2011, leaning heavily on government subsidies to stay aloft. By the end of 2016, its debt had swelled to $3 billion. Two years later, that figure climbed to $3.3 billion—up from $2.97 billion in 2017, forcing the government to step in with repeated bailouts to keep the carrier operational.
The privatization drive is part of a broader overhaul of loss-making state-owned enterprises. In June last year, the government agreed to restructure entities like PIA under a $3 billion bailout deal with the International Monetary Fund (IMF). But momentum stalled in February 2024, when the Election Commission directed the caretaker administration to “refrain” from finalising the deal ahead of general elections.
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