ISLAMABAD: Two of Pakistan’s leading business groups and a company backed by the powerful military will bid for the country’s ailing national carrier, a divestment the government hopes will kickstart the privatizations of state-owned enterprises.
The sale of Pakistan International Airlines will be the first major privatization for around two decades, with the sale of loss-making state-owned enterprises a condition of last year’s $7 billion bailout by the International Monetary Fund.
The government tried unsuccessfully to last year offload a stake in PIA, which is a major burden on its budget, but the sale was aborted because of the poor state of the airline and the conditions attached to any purchase.
Expressions of interest are due by Thursday for an up to 100 percent stake in the airline, with industry insiders expecting more bidders to emerge. They say the deal has been sweetened with a tax incentive and bolstered by signs of a turnaround in PIA’s fortunes.
The Ministry of Privatization did not respond to a request for comment.
