By Staff Reporter
ISLAMABAD: Pakistan International Airlines Corp. has attracted ten bidders, including tycoon Arif Habib and Gerry’s Group, for a majority stake in the state-owned carrier, according to people familiar with the matter.
Arif Habib, a prominent businessman, and Akram Wali Muhammad, Managing Director of Gerry’s Group, confirmed their bids in messages to Bloomberg.
Three private-sector airlines operating on domestic routes, including Fly Jinnah, owned by Lakson group, Air Sial, based in Sialkot, and Habib along with aviation expert Shujahat Azeem, have submitted bids.
Yunus Brothers Group/Kohinoor-Maple group, and Pioneer Cement/Mega & Forbes Group of Companies are also among the bidders.
Privatization Minister Abdul Aleem Khan said in a briefing in Islamabad the government will push back the deadline for companies to express interest in buying national carriers to May 18.
The extension came a day before the expressions of interest had originally been due.
“The Board accorded approval for extension in the date for submission of interests on the request of interested parties,” Minister Khan said.
Pakistan’s state-owned airline has become more attractive after the government said it would not pass on roughly three-quarters of the carrier’s debt to the eventual buyer. Pakistan is looking to sell between 51 percent and 100 percent of the carrier, which has failed to turn an annual profit in nearly two decades.
The disposal of the flag carrier is a step that past elected governments have steered away from as it is likely to be highly unpopular, but progress on the privatisation will help cash-strapped Pakistan pursue further funding talks with the International Monetary Fund.
Prime Minister Shehbaz Sharif, who returned to power in March, has said it’s no longer sustainable to prop up the money-losing carrier each year with taxpayer funds.
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