KARACHI: Pakistan is likely to complete long-delayed privatization of its loss-making national carrier, the Pakistan International Airlines (PIA), by November this year, officials said on Monday, as the government pushes ahead with key reforms to revive the struggling economy.
Cash-strapped Pakistan is looking to privatize the debt-ridden PIA to raise funds and reform state-owned enterprises as envisaged under a $7 billion International Monetary Fund (IMF) program secured last year.
In July, Pakistan prequalified four investors for the sale of PIA. Among the bidding groups, one is a consortium of major industrial firms Lucky Cement, Hub Power Holdings, Kohat Cement and Metro Ventures. Another is led by investment firm Arif Habib Corp. and includes fertilizer producer Fatima Fertilizer, private education operator The City School, and real estate firm Lake City Holdings. Additionally, Fauji Fertilizer Company, a military-backed conglomerate, and Pakistani airline Airblue, have been approved to bid for PIA.
On Monday, officials briefed the Senate Standing Committee on Privatization on the compliance status of previous recommendations, the impact of phasing out the single-buyer model and latest developments in the privatization of state-owned enterprises, including the PIA, according to the Senate Secretariat.
