ISLAMABAD: Pakistan’s Privatisation Commission has received Expressions of Interest (EOIs) from eight interested parties in purchasing Pakistan International Airlines Corporation Limited (PIACL), as part of the government’s effort to privatise the national flag carrier.
Eight parties submitted their expression of interest, but only five of them provided documents of qualification, the ministry said in a statement.
Among the five groups is a consortium of major industrial firms: Lucky Cement Ltd, Hub Power Holdings Ltd, Kohat Cement Co Ltd, and Metro Ventures.
Another is led by investment firm Arif Habib Corp Lt, and includes fertiliser producer Fatima Fertilizer Co Ltd, private education operator The City School, and real estate firm Lake City Holdings.
Fauji Fertilizer 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 documents.
“The government will review the documents and give qualified parties access to data for due diligence,” the statement read.
PIA resumed flights to Europe in January following a four-year ban by the EU over safety concerns. The airline is currently seeking clearance to operate in the UK, a step considered crucial for its revival. Industry experts suggest that the successful bidder is likely to collaborate with a foreign airline to manage operations.
A previous attempt to privatise PIA failed when a $36 million offer from the real estate firm Blue World City fell significantly short of the $305 million reserve price, with concerns raised over the airline’s debt burden, staffing issues, and limited operational control.
This time, the government is offering full divestment of its stake, has abolished sales tax on leased aircraft, and is providing limited indemnity against legal and tax-related claims. Additionally, around 80% of the airline’s debt has been absorbed by the state.
