PIA privatization: Bidding for 75% shares to be held today

ISLAMABAD: The Privatization Commission has announced that the bidding for a 75 percent stake in the national carrier, Pakistan International Airlines (PIA), will take place today, ARY News reported.

Bidders are required to submit sealed bids by 10:30 AM this morning, Tuesday. Following the submission, the Privatization Commission Board and the Cabinet Committee will approve the reference price.

The bids will be unsealed and opened in the presence of the bidders during a ceremony scheduled for 3:30 PM this afternoon.

Per established regulations, the privatization process, the announcement of the reference price, and the final bid results will all be concluded during this ceremony.

Muhammad Ali, the Prime Minister’s Advisor on Privatization, is set to hold a press conference following the conclusion of the bidding process.

The privatization of PIA is a key component of the Prime Minister’s economic reform agenda.

The government has reiterated its commitment to ensuring a transparent, reliable, and credible privatization process.

To maintain this transparency, the proceedings will be broadcast live on all private and state-owned television channels, as well as various social media platforms.

Earlier today, Privatisation Commission officials have said that three companies, instead of four, will participate in the bidding process for the privatisation of Pakistan International Airlines (PIA), as Fauji Fertiliser will no longer take part directly in the bidding.

According to officials, the privatisation of the national airline is scheduled to take place tomorrow (Tuesday).

The bidding process will now include three companies, while Fauji Fertiliser may join the successful consortium at a later stage.

Officials stated that all matters related to PIA’s privatisation have been finalised and preparations are complete. The buyer of the national airline will be exempt from paying sales tax on the purchase of new aircraft.

They added that in the previous attempt, the investor was required to clear liabilities amounting to Rs33 billion.

Under the current arrangement, the buyer will not be required to pay Rs26.6 billion in dues owed to the Federal Board of Revenue, nor will they have to settle Rs7 billion payable to Pakistan Aviation.

Between 51 per cent and 100 per cent of PIA’s shares will be sold, and all outstanding liabilities have been resolved prior to the bidding date. Officials noted that during the previous attempt, timely approval for GST relief from the IMF could not be obtained.

They expressed confidence that a better price is now likely, as routes to the UK and Europe have also been restored.

Investors participating in the privatisation process will be required to submit a bid bond of Rs2 billion, while financing of Rs80 billion will have to be arranged immediately after privatisation. Officials said the privatisation of the national airline would be ensured in a transparent manner.

It is worth noting that the bidding process will include the Arif Habib, Airblue and Lucky consortiums.