The federal government will issue fresh expressions of interest (EoIs) for the sale of Pakistan International Airlines (PIA) by the end of April, a senior official confirmed on Thursday. The move comes just two days after the national flag carrier posted its first annual profit in over 20 years.
Pakistan is looking to sell between 51 and 100 per cent of its stake in PIA as part of a broader effort to reform loss-making state-owned enterprises (SOEs) and meet conditions of a $7 billion programme agreed with the International Monetary Fund.
Last year’s attempt to privatise PIA failed after the government received just one offer, which was significantly lower than the expected valuation of over $300 million.
According to the Privatisation Commission, key hurdles identified by potential investors—such as legacy debt and taxation issues—have now been addressed. Most of PIA’s longstanding debt has been transferred to the government’s books, a move aimed at making the airline more attractive to buyers.
“In the previous round, pre-qualified investors had concerns about PIA’s balance sheet and tax liabilities, but those issues have now been resolved,” said Muhammad Ali, the Prime Minister’s adviser on privatisation. “We aim to publish the new EoI by the last week of April,” he added.
The government is targeting to finalise the privatisation process by the end of 2025. Ali also mentioned that the criteria for pre-qualification are being revised and the reference price could be adjusted in light of the airline’s improved financials.
Prime Minister Shehbaz Sharif had earlier pledged to privatise all state-owned enterprises, and the process is now gaining momentum. Ali revealed that the government has also initiated the privatisation of electricity distribution companies, calling it a “high-priority transaction”.
He added that several entities initially planned for sale in later phases are now being moved up to the first phase of the privatisation programme.
