CCOP vows to divest PIA through privatization

ISLAMABAD: Cabinet Committee on Privatization (CCOP) at its meeting has reiterated government’s resolve to divest Pakistan International Airlines Company Limited through privatization or government to government mode.

Deputy Prime Minister Ishaq Dar chaired the meeting in Islamabad.

The Cabinet Committee on Privatization noted with satisfaction the assessment of the aviation division on healthy PIACL’s finances.

The CCOP also constituted a committee under the convenorship of Minister of State for Finance to evaluate possible transaction options for privatization of Roosevelt hotel and modes to be adopted in the light of available legal provisions.

Earlier, Federal Minister Aleem Khan said that the cabinet committee will finalize privatization of Pakistan International Airline (PIA).

The Ministry decided to send the matter pertaining to the privatization of PIA to the cabinet committee.

The minister urged that the privatization process of the national institutions including PIA should be improved and any delay in this regard should be avoided.

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.

Read More: PIA stake sale attracts sole bid below govt’s expectations

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.

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.

The Privatisation Commission said it had asked the bidder to match the minimum bid.