PAKISTAN: Pakistan plans to hold final bidding to sell its loss-making national airline by October and complete the sale by the end of this year, the country’s privatization czar said in an interview this week, in what would be Islamabad’s most serious effort yet to sell off Pakistan International Airlines (PIA) after decades of repeated failures and costly government bailouts.
The latest attempt comes as the government seeks to cut losses from state-owned firms that have drained the public purse and undermined economic stability for years. PIA, once a respected carrier in Asia, has been propped up by taxpayers for decades due to political interference, corruption and inefficiencies. Its privatization has also repeatedly collapsed amid union resistance, legal hurdles and low investor appetite.
Selling off unprofitable state companies has been a key demand of international lenders such as the International Monetary Fund (IMF), whose support is critical for Pakistan to avoid default and manage its ballooning debt.
Last week, five consortiums submitted expressions of interest for a 51–100 percent stake in PIA after the government restructured its balance sheet to make the deal more attractive. It has also scrapped the sales tax on leased aircraft and is providing limited protection from legal and tax claims. Around 80 percent of the airline’s debt has been transferred to the state.
