ISLAMABAD: Pakistan’s privatization chief Muhammad Ali announced on Monday that the government aims to complete the sale of Pakistan International Airlines (PIA) by the end of this year, part of a sweeping new privatization program backed by what he called “the highest level of commitment.”
Pakistan’s government has been attempting 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. Late last year, a deal fell through after a potential buyer reportedly offered $36 million for a 60 percent stake in the national flag carrier, a fraction of the asking price of approximately $303 million.
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.
