**Pakistan’s Attempt to Privatize Debt-Ridden Airline Faces Setback with Low Bid**
Pakistan’s efforts to privatize its national airline encountered a significant setback when the sole bidder offered just PKR 10 billion (approximately ₹30.25 crore) for a 60 percent stake. According to a PTI report, this offer falls short of the minimum price of PKR 85 billion set by the Shehbaz Sharif government.
The bidding ceremony for the sale of Pakistan International Airlines (PIA) took place at a hotel in Islamabad and was broadcast live on the state-run PTV channel. This initiative to sell PIA and other loss-making state-owned enterprises is part of a deal with the International Monetary Fund (IMF), which recently agreed to provide $7 billion to Pakistan.
In June, the government pre-qualified six groups, but only one—Blue World City, a real estate development company—participated in the final bidding process, as reported by PTI. The Privatisation Commission has requested the bidder to meet the minimum bid requirement.
Blue World City chairman Saad Nazir stated, “We wish the government all the best if they don’t want to accept our bid.” As per a Bloomberg report, Nazir is planning to attract Chinese and Turkish investors with aviation expertise.
Islamabad aimed to sell a 51-100 percent stake in the financially troubled PIA to generate funds and reform state-owned enterprises. However, the low bid suggests that the privatization process may be in jeopardy.
PIA’s owned assets are valued at approximately PKR 152 billion, including its aircraft and operational routes. The national airline is burdened with significant debt, employing around 7,100 people, over 2,400 of whom work on a daily wage basis, complicating its privatization efforts.
Experts indicate that PIA is incurring losses, owes billions of rupees in debt, and has an aging fleet. Any potential investor would need to make a substantial investment to turn it into a profitable entity. Additionally, PIA has been banned from operating flights to the European Union since 2020 due to concerns about some pilots holding fake licenses.