PIA privatization gains momentum as major investors show interest

KARACHI: The process for Pakistan International Airlines (PIA) privatization has accelerated once again, with significant interest shown by prominent groups for the acquisition of PIA, ARY News reported on Friday citing sources

According to sources interested groups’ names include the Arif Habib Group, Taba Group, and YB Holdings. Key meetings have reportedly taken place in Islamabad among representatives of these groups to discuss the potential acquisition of PIA.

Sources indicate that, since the process for PIA privatization has gained momentum, the interested groups have expressed their willingness to proceed with the acquisition of Pakistan’s national airlines, provided their conditions are met.

Among these conditions is the demand that the government assumes responsibility for PIA’s outstanding liabilities, including billions owed to the Federal Board of Revenue (FBR), Pakistan State Oil (PSO), and the aviation sector.

Additionally, it has been reported that the International Monetary Fund (IMF) has set a target for PIA privatization to be completed by July.

This development comes as part of broader economic reforms and restructuring efforts aimed at improving the financial health of the national carrier.

The government is actively engaging with international financial institutions, including the World Bank, to ensure the success of the privatization process. This effort is seen as crucial for reducing financial losses and improving operational efficiency.

Earlier in 2024, during discussions on the contentious issue of Pakistan International Airlines (PIA) privatization, Law Minister Azam Nazeer Tarar expressed optimism that the government would secure better bids in the second attempt.

The matter was deliberated in the National Assembly, where former Commerce Minister Naveed Qamar voiced concerns, reflecting on a previously unsuccessful privatization attempt.

Qamar questioned the timeline for the initiative, emphasizing the need for meticulous planning in the process.

Responding to these concerns, Law Minister Tarar conveyed the government’s confidence, attributing it to the positive development of restoring PIA’s routes to Europe, which is expected to attract improved bids.