Islamabad, Dec 17 (PTI) Pakistan has decided to sell its entire 100 per cent stake in Pakistan International Airlines after bidders sought complete managerial control with no government role post-privatisation,
local media reported on Wednesday.
Bidding is scheduled for December 23 and will initially be for 75 per cent shares of the loss-making national flag-carrier, with the winning bidder given an option to acquire the remaining 25 per cent within a month after bidding at a 12 per cent premium.
The extra 12 per cent price is charged as the buyer is allowed to delay payment for one year instead of instant payment.
The government will receive only 7.5 per cent of the bid amount in cash, while 92.5 per cent will be reinvested directly into PIA to support revival, officials told The Express Tribune newspaper.
The federal government is selling 100 per cent shares because all four bidders wanted the government to have no role in PIA after the deal, privatisation commission officials said.
Major business groups like Lucky Cement Consortium, Arif Habib Consortium, Fauji Foundation-owned Fauji Fertiliser and Air Blue are bidding for PIA.
Advisor to the Prime Minister on privatisation Muhammad Ali confirmed the decision, saying all bidders wanted at least 75 per cent shareholding for ease of decision-making, while some demanded 100 per cent ownership.
The government’s larger objective is to revive PIA and take it back to its past glory, Ali said, adding, "This requires heavy investment for fleet revamping, acquisition of planes."
Earlier, Prime Minister Shehbaz Sharif had indicated plans to sell only a 60 per cent stake, but the move failed to attract serious buyers in 2024.
To improve attractiveness, the government parked PkR 654 billion of PIA’s debt in a holding company, while PIA now has positive equity of PkR 30 billion, privatisation officials said.
This year, PIA will get PkR 34.7 billion from the budget to pay debt, pensions and medical expenses.
Even after removing major debt, the new owners will still have to pay PkR26 billion in taxes and airport charges.
PIA owns 34 aircraft, of which only 18 are airworthy, but holds valuable landing slots and air service agreements with 97 countries, making it a key asset for bidders.
The government has promised support, legal protection, and indemnity against some liabilities to attract buyers. PTI SH SKS SKS GRS
GRS
