Pakistan’s Privatisation Commission is intensifying efforts to alleviate concerns raised by prospective bidders for Pakistan International Airlines (PIA) regarding the European Union Aviation Safety Agency (EASA) ban on the national carrier, an official announced on Wednesday.
The privatisation of state-owned enterprises, including the financially beleaguered PIA, has been a longstanding recommendation by the International Monetary Fund (IMF) to Pakistan. The country, currently negotiating a substantial bailout package with the IMF, aims to expedite the privatisation process to secure vital financial support.
In June, the Privatisation Commission pre-qualified six consortiums for bidding, marking a critical step towards the potential sale of PIA. Secretary Usman Bajwa confirmed that the commission is actively addressing concerns raised by these pre-qualified bidders, who are vying for a stake ranging from 51% to 100% in the airline.
“Previous administrations shied away from divesting PIA due to potential public backlash,” Bajwa noted during a briefing. “However, the current economic imperatives necessitate unlocking further IMF funding.”
PIA has faced significant operational challenges following an EASA ban on its European and British routes since a fatal crash in Karachi in 2020, which claimed nearly 100 lives. Subsequent investigations revealed irregularities in pilot licenses, prompting prolonged restrictions that cost the airline an estimated annual revenue loss of nearly Rs40 billion ($143.73 million), as disclosed by the government to parliament.
The Privatisation Commission expects to conclude the sale of PIA by next month, marking a pivotal moment in Pakistan’s economic restructuring efforts amidst ongoing financial pressures.
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