Bidding for 75% PIA Stake Scheduled
Pakistan is poised to take a major step toward restructuring its national carrier, as bidding for the privatization of 75% of Pakistan International Airlines (PIA) shares will be conducted tomorrow in Islamabad, according to officials from the Privatization Commission.
Pre-qualified bidder groups are set to submit their sealed bids between 10:45 am and 11:15 am, with the bids scheduled to be opened at 3:30 pm in the presence of the media to ensure transparency. Officials noted that only bids exceeding the approved reserve price will be considered.
Approval Process and Cabinet Oversight
The Privatization Commission Board will first approve the reserve price for the sale. Following this, the Cabinet Committee on Privatization will make the final decision. If a bid falls below the reserve price, the highest bidder will have an opportunity to match the required amount.
Structure of the Stake Sale
Under the privatization plan:
- 92.5% of proceeds from the 75% stake will be reinvested directly into PIA
- 7.5% of proceeds will be transferred to the government
The successful bidder will also have 90 days to acquire the remaining 25% shares, enabling full ownership of the airline. The new investor is expected to inject Rs80 billion over five years, aimed at reviving operations, improving services, and strengthening the airline’s financial position.
Employee Job Security and Benefits
To address employee concerns, officials confirmed that job security will be guaranteed for one year following privatization. Additionally, pension and post-retirement benefits will remain the responsibility of the holding company, ensuring continuity for existing staff.
Significance of Privatization
The move is being viewed as critical for reducing financial losses and enhancing efficiency at Pakistan’s national carrier. Government officials emphasized that the structured bidding process and investment requirements are designed to protect public interest while securing PIA’s long-term future.