'PIA likely to be sold to a foreign govt via SIFC'

ISLAMABAD: Pakistan International Airlines (PIA) is likely to be sold to a foreign government as the Privatisation Commission has rejected Rs10 billion bid from Blue World Consortium, ARY News reported on Wednesday, citing sources.

Pakistan is looking to offload a 51-100pc stake in debt-ridden PIA to raise funds and reform state-owned enterprises as envisaged under a $7 billion International Monetary Fund programme.

As per details, the Privatisation Commission has turned down the Rs10 mln bid of Blue World Consortium for buying PIA. The sources further said PIA is likely to be sold to a foreign government under a government-to-government (G2G) agreement, with Qatar or Abu Dhabi being potential buyers.

The Strategic Investment Facilitation Council (SIFC) is reportedly considering inviting expressions of interest (EOIs) from foreign investors by November 30.

Sources indicate that several terms and conditions have already been established, potentially streamlining negotiations with Qatar or Abu Dhabi.

Earlier in Oct, the final bidding process for the privatisation of PIA attracted just one bid of Rs10 billion ($36 million) for a 60 per cent (pc) stake in the national flag carrier.

The government had pre-qualified six groups in June, but only real-estate development company Blue World City participated in the bidding process, placing a bid that is below the government-set minimum price of Rs85 billion.