ISLAMABAD: Pakistan is set to broadcast live the auction of its loss-making national airline tomorrow, Pakistani state media reported on Monday, a move authorities say is aimed at ensuring transparency.
Pakistan will privatize 75 percent of the carrier, the Pakistan International Airlines (PIA), while retaining its name and branding, according to Prime Minister Shehbaz Sharif’s Office.
The decision marks Islamabad’s most aggressive push in decades to reform the debt-ridden airline, which has accumulated more than $2.5 billion in losses and become a major burden on the national budget.
Pakistan prequalified in July four consortiums for the sale, but Fauji Fertilizer Company Ltd. withdrew later. Lucky Cement and Arif Habib Corporation lead two other consortiums, while private airline Airblue is the third contender.
“The government plans a full divestment of the airline, beginning with the auction of a 75 percent stake on Tuesday, with the remaining 25 percent to be offered later at a 12 percent premium,” Pakistan TV Digital reported quoted Privatization Commission Chairman Muhammad Ali as saying.
