Pakistan is reportedly considering selling its debt-ridden national airline, Pakistan International Airlines (PIA), to a foreign government, with Qatar and Abu Dhabi identified as potential buyers. This move is part of Pakistan’s broader effort to privatize state-owned enterprises, including PIA, to secure much-needed revenue under its $7 billion International Monetary Fund (IMF) program.
According to Pakistani media, the government plans to offload 51-100% of the airline’s stake. The Strategic Investment Facilitation Council (SIFC), backed by the military, is expected to invite expressions of interest (EOIs) from international investors by November 30, with Qatar and Abu Dhabi already in talks.
Sources confirmed that Qatar has shown interest in acquiring PIA for over $2 billion, a move being supported by Fawad Hasan Fawad, Pakistan’s Privatisation Minister, who has held talks with Qatari officials to facilitate the sale. Earlier, reports also indicated interest from international investors from Germany, France, Malaysia, and Turkey.
Efforts to privatize PIA have faced challenges. A recent bid for a 60% stake by the real estate firm Blue World City was rejected due to its value falling short of the minimum price. The privatization process also follows years of financial struggles for PIA, which has lost over $3.6 billion in the past two decades. The airline has also incurred substantial losses, including a PKR 75 billion loss in the first nine months of 2023.
Despite past setbacks, including a failed privatization attempt in 2016, the military-backed SIFC is determined to push through with the sale, which may offer Pakistan a way out of its financial crisis while aiming for higher foreign direct investment.
