Pakistan to Invite New Bids for Sale of PIA

The Pakistani government will issue a fresh call for expressions of interest (EoIs) in the sale of Pakistan International Airlines (PIA), according to Muhammad Ali, Adviser on Privatization, who spoke to Reuters on Thursday. Pakistan is aiming to divest a 51% to 100% stake in the financially struggling national carrier as part of a broader initiative to raise capital and reform loss-making state-owned enterprises, a key component of a $7 billion programme agreed with the International Monetary Fund (IMF). A previous attempt to privatize PIA last year failed after attracting just a single bid, which fell short of the government’s expectations. In response to concerns raised during that earlier process, the government has assumed nearly all of PIA’s legacy debt, transferring the burden to its own balance sheet. The move was intended to address issues flagged by prospective investors, the privatization ministry said. “In our last attempt to privatize PIA, pre-qualified bidders had some issues with taxation and the balance sheet. Those are taken care of now,” Ali explained. “We plan to publish the new Expression of Interest by the last week of April 2025.” The government aims to finalize the privatization of PIA by the end of the year. The adviser also noted that the pre-qualification criteria are being revised, and the reference price may be adjusted in light of the airline’s updated financial statements.