Latest news with #PrivatisationMinistry
India Today
13 hours ago
- Business
- India Today
Pakistan draws 5 potential buyers for its struggling national airline
In its efforts to sell its struggling national airline, Pakistan has received expressions of interest from five parties, including business groups and a military-backed firm, the Privatisation Ministry said on bids were submitted ahead of a June 19 deadline to acquire up to 100 per cent of Pakistan International Airlines, which has accumulated over USD 2.5 billion in losses in roughly a decade. Still, following a major restructuring, it posted its first operating profit in 21 years in the year through June sale is seen as a test of Pakistan's ability to shed loss-making state firms and meet conditions of a USD 7 billion International Monetary Fund bailout. It would be the country's first major privatisation in nearly two decades. Eight parties submitted their expression of interests, but only five of them provided documents of qualification, the ministry said in a the five groups is a consortium of major industrial firms: Lucky Cement Ltd, Hub Power Holdings Ltd, Kohat Cement Co Ltd and Metro is led by investment firm Arif Habib Corp Ltd and includes fertiliser producer Fatima Fertiliser Co Ltd, private education operator The City School and real estate firm Lake City Fertiliser Company Ltd, a military-backed conglomerate, Pakistani airline Airblue Ltd and a consortium that includes Bahria Foundation, domestic carrier Serene Air and US-based Equitas Capital LLC also submitted government will review the documents and give qualified parties access to data for due diligence," the statement DIVESTMENTOnce a leading global airline, PIA resumed European flights in January after a four-year EU ban linked to safety concerns, and is seeking UK clearances, seen as key to its turnaround. Industry insiders say the winning bidder is expected to partner with a foreign airline to run operations.A previous attempt to sell the airline failed as a USD 36 million bid from real estate firm Blue World City fell short of the USD 305 million floor price, with concerns over debt, staffing and limited time, the government is offering full divestment, has scrapped the sales tax on leased aircraft, and is providing limited protection from legal and tax claims. Around 80 per cent of the airline's debt has been transferred to the state."We're targeting 86 billion rupees in privatisation proceeds this year," Privatisation Minister Muhammad Ali told Reuters. "For PIA, in the last round of bidding, 15 per cent of the proceeds were going to the government, with the rest staying within the company."He said bidders would be pre-qualified in early July, with due diligence lasting 2 to 2.5 months, and final bidding and negotiations expected in the fourth quarter of hope the sale will revive the stalled privatisation drive. Other planned deals include the Roosevelt Hotel and several power firms, by Watch IN THIS STORY#Pakistan
Zawya
20 hours ago
- Business
- Zawya
Pakistan draws five potential buyers for national airline PIA, including military-backed group
In its efforts to sell its struggling national airline, Pakistan has received expressions of interest from five parties, including business groups and a military-backed firm, the Privatisation Ministry said on Thursday. The bids were submitted ahead of a June 19 deadline to acquire up to 100% of Pakistan International Airlines , which has accumulated over $2.5 billion in losses in roughly a decade. Still, following a major restructuring, it posted its first operating profit in 21 years in the year through June 2024. The sale is seen as a test of Pakistan's ability to shed loss-making state firms and meet conditions of a $7 billion International Monetary Fund bailout. It would be the country's first major privatisation in nearly two decades. Eight parties submitted their expression of interests, but only five of them provided documents of qualification, the ministry said in a statement. (Reporting by Ariba Shahid in Islamabad; Editing by Bernadette Baum)
Express Tribune
27-05-2025
- Business
- Express Tribune
Deadline to bid for PIA extended to June 19
The government extended the deadline for submitting expressions of interest (EoIs) for purchasing the national flag carrier, PIA, by two weeks, the Privatisation Ministry said on Tuesday. The ministry did not provide any reason for the extension of deadline from June 3 to June 19. It also did not disclose whether any EoI had been submitted so far for the sale of a 51 to 100% stake in the airlines. The previous attempt to privatise the debt-ridden airline failed last year when a single bid was received that was well below the asking price of more than $300 million. In April, the airline reported its first annual profit in more than two decades
