KARACHI: Pakistan International Airlines (PIA) is expected to be run by a new owner from April next year and receive fresh capital under a deal to privatize the flag carrier, the country’s privatization chief said on Wednesday.
A consortium headed by the Arif Habib Corporation emerged as the top bidder in a live-televised auction for a 75 percent stake in PIA on Tuesday, marking a breakthrough for the government’s long-delayed privatization of the carrier.
The Arif Habib consortium offered 135 billion rupees ($482.14 million), surpassing a government reserve price of 100 billion rupees, in a sharp turnaround from last year’s failed sale attempt.
Muhammad Ali, the privatization adviser to the prime minister, told Reuters in an online interview that the state expects a new owner to be running the airline by April, subject to approvals.
The process now moves to final approvals by the Privatization Commission board and the cabinet, expected within days, with contract signing likely within two weeks and financial close after a 90-day period to meet regulatory and legal conditions.
