KARACHI – The Privatization Commission faces a setback as it failed to gain the attention of foreign investors in the sale of Pakistan International Airlines (PIA). Despite the committee’s attempts to hasten the privatization process, no foreign group has shown interest in acquiring the national carrier to date.
Moreover, several prominent Pakistani business groups weren’t shortlisted. Out of the eight consortiums, three were disqualified and five were shortlisted for the next phase of privatization shortlisted candidates include Airblue, the AirSial Consortium, and three other unnamed groups. On the other hand, PIA employees demanded to be allowed to acquire the airline; however, it was quickly turned down, which further narrowed down the pool of buyers.
PIA Privatisation Efforts
Earlier this year, Pakistan made its third attempt to privatize its national airline, Pakistan International Airlines (PIA), following two previous efforts that failed due to low investor interest and financial concerns.
The government is offering full management control along with new incentives, including tax exemptions on aircraft, financial support, and legal protections. To enhance the attractiveness of Pakistan International Airlines (PIA), the government has significantly reduced its liabilities from Rs 864 billion to Rs 190 billion by transferring debt and non-core assets to a new holding company. The objective is to complete the privatization by December 2025.
