Due diligence in process: Govt intends to dispose of PIACL assets
Muhammad Farooq Sattar chaired the meeting of National Assembly's Standing Committee on Privatisation on Monday to get briefing on privatisation of PIA and First Women Bank Limited (FWBL).
Four pre-qualified parties for PIA privatisation will now proceed to the buy-side due diligence phase from Tuesday (today) and process will be completed in 60 to 90 days period depending on the potential buyers, Privatisation Commission Secretary Usman Akhtar Bajwa informed the committee members.
PIA privatisation: EoIs due today for up to 100% stake
Four interested parties have been prequalified: Consortium comprising Lucky Cement Limited, Hub Power Holdings Limited, Kohat Cement Company Limited, and Metro Ventures (Private) Limited. Consortium comprising Arif Habib Corporation Limited, Fatima Fertilizer Company Limited, City Schools (Private) Limited, and Lake City Holdings (Private) Limited. Fauji Fertilizer Company Limited and Air Blue (Private) Limited.
The prequalified parties will now proceed to the buy-side due diligence phase - a critical next step in the transparent and competitive privatisation process of PIACL.
The chairman committee, however, recommended the government to assure the retention period for 6,700 PIA employees from three to four years after privatisation of the airlines.
Earlier, secretary Privatisation Commission said that 20 to 25 percent surplus staff was present in the PIA, however, the potential buyers would need additional staff with the expansion of flying operation. He said that the commission would ensure retention of employees through negotiation with the potential buyers which was 18 months in the last round of PIA bidding.
He said that out of four, three interested parties participated in previous round of bidding.
Fly Jinnah did not participate in the bidding because Air Arabia was of the view that they had the experience to run only low cost airlines and not international airline like PIA.
Responding to base price of the PIA operational assets, secretary said that it would be decided near bidding date. Depending on the interest and financial advisers transactional structure, he added.
Secretary Commission further revealed expression of interest (EOI) for privatisation of Roosevelt Hotel in New York City would be invited in August 2025.
Air Vice Marshal (retired) Muhammad Amir Hayat informed the committee that PIA has joint operation with Turkish Airline and Ethiopian Airlines.
He disclosed that the financial health of PIA would further improve after restoration of its flight to Manchester (UK).
Copyright Business Recorder, 2025
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