Pakistan mulls transaction structure for second attempt to privatize loss-making national airline
ISLAMABAD: Pakistan is mulling transaction structure for a second attempt to sale 51-100 percent share of its loss-making national carrier, the Pakistan International Airlines (PIA), the Privatization Commission said on Tuesday.
Cash-strapped Pakistan is looking to privatize the debt-ridden PIA to raise funds and reform state-owned enterprises as envisaged under a $7 billion International Monetary Fund (IMF) program secured last year.
Late last year, a deal fell through after a potential buyer reportedly offered $36 million for a 60 percent stake in the national flag carrier, a fraction of the asking price of approximately $303 million.
On Tuesday, Muhammad Ali, Pakistan prime minister adviser on privatization, presided over the commission's board meeting to discuss transaction structure for the divestment of the Pakistan International Airlines Corporation Limited (PIACL).
'The board recommended to CCOP (Competition Commission of Pakistan) the transaction structure proposed for the 2nd attempt of PIACL privatization based on divestment of 51 percent to 100 percent share capital of PIACL together with the management control of PIACL,' the Privatization Commission said.
'The final terms and conditions for the transfer and acquisition of equity stake shall be finalized during course of bidding process and set out in the bid documents for approval by CCOP.'
In June, the government had pre-qualified six groups, but only real-estate development company Blue World City participated in the bidding process to acquire the airline.
Among concerns raised by potential bidders for the PIA stake include policy continuity, honoring contracts, inconsistent government communication, unattractive terms and taxes on the sector, and the flag carrier's legacy issues and reputation.
Officials say PIA's cumulative losses alone are close to $3 billion, with the total asset valuation of the airline standing at approximately $572 million.
Earlier this year, PIA resumed operations in Europe, after a 2020 ban by the European Union Aviation Safety Agency (EASA) over concerns about the ability of Pakistani authorities and its Civil Aviation Authority (PCAA) to ensure compliance with international aviation standards.
EASA and UK authorities both suspended permission for PIA to operate in the region after Pakistan began investigating the validity of pilots' licenses following a deadly plane crash that killed 97 people. Pakistan hopes new European routes and flying approval to the UK will boost PIA's selling potential.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Saudi Gazette
8 hours ago
- Saudi Gazette
Crown Prince lauds great efforts exerted to ensure comfort of pilgrims
Saudi Gazette Report MINA — On behalf of Custodian of the Two Holy Mosques King Salman, Crown Prince and Prime Minister Mohammed bin Salman received Eid Al-Adha well-wishers at the Royal Court of Mina Palace on Friday. The reception was attended by Pakistani Prime Minister Muhammad Shehbaz Sharif, Saudi Grand Mufti Sheikh Abdul Aziz Al-Sheikh, several princes, senior scholars and sheikhs, senior officials of the Gulf Cooperation Council (GCC) states, ministers, and the commanders of the military sectors and scouts participating in this year's Hajj. In a speech, the Crown Prince, on behalf of King Salman, congratulated the attendees as well as Saudi citizens, expatriates, and the Hajj pilgrims on the blessed occasion of Eid Al-Adha. 'We implore God Almighty to return this blessed occasion to our nation and to Muslims around the world with continued goodness, prosperity, and peace. The continued success we witness today in serving pilgrims is the result of the efforts of our blessed state in serving the Two Holy Mosques, the holy sites, and their visitors,' he said while emphasizing that Saudi Arabia will continue exerting efforts to ensure comfort of the pilgrims. 'We commend the continuous efforts made by you, those working across various government sectors, and the male and female volunteers in implementing the state's policies so as to enable pilgrims to complete their rituals in security and tranquility. We ask God Almighty to continue blessing us with security and safety, and to grant us success in continuing to perform this great duty to the fullest extent possible,' he added. Lt. Gen. Mohammad Al-Bassami, director of Public Security and chairman of the Hajj Security Committee, delivered a speech on behalf of the military sectors participating in the Hajj. He highlighted the government's financial capabilities, human resources, and technical equipment to serve the pilgrims, paying the utmost attention to the Grand Mosque and its visitors. Al-Bassami said that a total of 213,323 personnel from the security and military sectors are participating in implementing the directives of the leadership to facilitate the performance of the Hajj rituals in safety and security, relying on the help of God and fortified by their professional capabilities, field experience, and knowledge gained from the Saudi Vision, led by the Crown Prince, making serving the pilgrims one of their most important priorities and noble goals. He pointed out that the successes achieved by the Hajj security plans to date are the result of the directives of King Salman and the unlimited support of the Crown Prince for the continuous improvement of service to the pilgrims. He highlighted the supervision and follow-up of the minister of interior and chairman of the Supreme Hajj Committee over the preparation and implementation of Hajj security plans, as well as the integration of roles among all participating entities. 'All plans are built on precise foundations and clear responsibilities, supported by an advanced operations center that plays a significant role in managing the security and service system. The center utilizes advanced technologies and modern surveillance systems, making immediate decisions through data analysis and risk assessment to ensure the security and safety of pilgrims,' he added.
Saudi Gazette
13 hours ago
- Saudi Gazette
Saudi Crown Prince receives Pakistan prime minister
Saudi Gazette report MINA — Crown Prince Mohammed bin Salman received Prime Minister of Pakistan Muhammad Shehbaz Sharif at Al-Mina Palace on Friday. During the reception, congratulations were exchanged on the occasion of Eid al-Adha. The two leaders reviewed historical relations between the two brotherly countries, prospects for bilateral cooperation, and ways to develop it in various fields. Regional developments and efforts to achieve security and stability were also discussed. The reception was attended by Prince Saud bin Mishaal, Deputy Governor of Makkah Region, Prince Abdulaziz bin Saud, Minister of Interior, Prince Khalid bin Salman, Minister of Defense, Prince Faisal bin Farhan, Minister of Foreign Affairs, Minister of State, Cabinet Member and National Security Advisor Dr. Al-Aiban, Minister of State for Foreign Affairs Adel Al-Jubeir, Minister of Information Salman Al-Dosari, Chief of General Intelligence Khalid Al-Humaidan, and Saudi Ambassador to Pakistan Nawaf bin Saeed Al-Maliki. From the Pakistani side, Deputy Prime Minister and Minister of Foreign Affairs Muhammad Ishaq Dar, Chief of Army Staff Field Marshal Hafiz Syed Asim, Minister of Interior Mohsin Raza Naqvi, Minister of Information Atallah Tarir, Ambassador to the Kingdom Ahmed Farooq, First Secretary to the Chief of Army Staff Major General Muhammad Jawad Tariq, Military Secretary to the Prime Minister Tajdeed Mumtaz, and Chief of Protocol to the Prime Minister Tipu Sultan attended.
Leaders
a day ago
- Leaders
Pakistan PM Visits Saudi Arabia: Eid Celebrations & Strategic Talks
Pakistani Prime Minister Shehbaz Sharif arrived in Saudi Arabia on Thursday for a crucial two-day official visit. He accepted Crown Prince Mohammed bin Salman's invitation to strengthen vital bilateral relations between the longstanding allies. The Prime Minister's Office confirmed his arrival and the visit's objectives earlier today. During his stay, PM Sharif will celebrate Eid Al-Adha within the Kingdom. He will hold substantive bilateral talks with Crown Prince Mohammed bin Salman. Discussions will prioritize boosting mutual cooperation in vital trade and investment sectors. Regional security matters will also feature prominently on their shared agenda. The two leaders will explore avenues to further strengthen multifaceted bilateral ties. Enhancing economic partnerships and investment flows remains a top priority. They will also address Muslim Ummah welfare and regional peace initiatives. Acknowledging Mediation & Boosting Economic Partnership PM Sharif will express Pakistan's sincere gratitude for Saudi Arabia's recent diplomatic intervention. The Kingdom played a pivotal role in de-escalating tensions between Pakistan and India. Gulf partners supported this crucial mediation effort between the nuclear neighbors last month. This high-level visit underscores rapidly expanding Saudi-Pakistan economic links. Both nations signed multiple significant trade and investment agreements recently. Saudi Arabia committed a substantial $5 billion investment package supporting Pakistan's economy. Saudi and Pakistani businesses signed 34 MoUs worth $2.8 billion last year. These agreements cover industry, technology, and agriculture sectors importantly. Manara Minerals is also negotiating to acquire a stake in Pakistan's massive Reko Diq project. Enduring Bonds: Defense & Vital Diaspora Links Defense collaboration remains a cornerstone of the robust Saudi-Pakistan relationship. The nations share a deep history of military cooperation and mutual support. Pakistan also provides valuable training assistance to Saudi forces. Approximately 2.7 million Pakistanis form a crucial diaspora within Saudi Arabia. Their remittances provide the highest foreign exchange inflow for Pakistan. This financial support constitutes an essential economic lifeline for their homeland. Short link : Post Views: 11
