Pakistan set to privatize PIA by June instead of October

ISLAMABAD: Pakistan to expedite the privatization of Pakistan International Airlines (PIA), with the process now expected to be completed by June, four to five months ahead of the original October deadline, ARY News reported citing sources.

According to sources, PM Shehbaz has tasked the Privatization Commission to accelerate the process. The government has also decided to improve PIA’s financial health before the privatization.

Additionally, the government plans to reopen routes to the United States, with security audits set to be conducted in collaboration with the US Federal Aviation Authority. American experts are expected to visit Pakistan in March or April to facilitate the reopening of these routes.

PIA currently has 12 Boeing 777 aircraft, with six of them operational. The airline plans to increase its fleet of white-body aircraft for European routes.

Sources further revealed that bids for PIA’s privatization are expected to be invited in the coming weeks.

Earlier, Federal Minister for Privatization, Aleem Khan held the Federal Board of Revenue (FBR) responsible for the failed Pakistan International Airlines sale.

This he stated while expressing his views in the Senate Standing Committee on Privatization, which met under the chair of Senator Talal Chaudhry here in Islamabad.

The meeting discussed the reasons behind the lower bid for PIA sale. Aleem Khan said the process of Pakistan International Airlines privataization started on November 28, 2023, before he assumed charged as the privatization minister.

He said PIA’s losses were, Rs830 billion at the time of privatization and the process cannot be halted once it begins.

Holding Federal Board of Revenue (FBR) responsible for the PIA’s failed privatization, Aleem Khan said the body was asked to remove provision of GST on the buying of new aircraft, but they did not accept it.