Pakistan receives 3 offers to sell the national airline in a “historic deal”
Pakistan received three offers on Tuesday to privatize the national airline, Pakistan International Airlines (PIA), which is burdened with debt and losses.
The bidding process, which was broadcast live on television, is a real test of Islamabad’s efforts to sell loss-making state companies.
Prime Minister Shehbaz Sharif told his cabinet of the need to ensure the transparency of the process, and said in a televised statement: "The biggest deal in Pakistan’s history is about to take place"
The bidding session witnessed the submission of offers from 3 trade associations to obtain a 75% stake in Aviation. Under the new terms, the winning bidder will pay only 7.5% of the bid amount in cash, with the remaining 92.5% being reinvested directly into the airline for its revival.
Once one of Asia’s most prominent airlines, Pakistan International Airlines (PIA) has suffered from chronic mismanagement, political interference, a swollen headcount, mounting debt, and operational problems that led to its flights to the European Union and the United Kingdom being banned in 2020. Following a scandal related to pilot licensing.
The privatization of the airline is also a prerequisite for the $7 billion International Monetary Fund program, which Pakistanlast year.
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