Pakistan’s Privatisation and Investment Minister, Abdul Aleem Khan, announced on Thursday that the government is determined to finalise the privatisation of Pakistan International Airlines (PIA) within the next three months.
This move comes as part of the broader reforms recommended by the International Monetary Fund (IMF).
In April 2024, the Privatisation Commission revealed its plans to sell a stake ranging from 51 to 100 per cent of the national airline. This decision is in line with efforts to address financial challenges and enhance the airline’s operational efficiency.
The National Assembly Standing Committee on Privatisation was informed earlier this year, on February 26, that the government’s initial attempt to privatise PIA had cost the exchequer $4.3 million.
A lack of interest from potential buyers was attributed to factors such as the 18 per cent general sales tax on new aircraft purchases and the airline’s mounting liabilities.
In a statement released by the Privatisation Ministry, Minister Khan outlined a revamped plan aimed at making PIA’s privatisation more appealing. “We have laid out a new roadmap to ensure a smoother and more attractive privatisation process. All steps will be completed within the next three months,” he stated.
The minister reassured that the government has taken significant measures to address the concerns raised by interested parties. “We’ve made necessary adjustments to cater to the preferences of potential investors. The aim is to streamline the process and make it more viable,” he added.
According to Dawn, Khan expressed confidence in PIA’s potential to regain profitability through privatisation. He highlighted the positive outlook, emphasising that the reintroduction of PIA flights to European destinations has created a more favourable environment for the airline’s sale.
He further revealed that flights to the United Kingdom are expected to resume within the next three months, followed by the launch of routes to the United States and the Far East in subsequent phases.
The minister underlined that PIA remains a preferred airline for many Pakistanis and that these steps will help restore its credibility.
