Islamabad: The government will invite expressions of interest (EoIs) for the privatisation of Pakistan International Airlines (PIA) in early March, aiming to transfer the airline to private hands before the fiscal year ends, an official from the Privatisation Commission confirmed on Tuesday.
The privatisation process, previously stalled due to investor concerns, has gained momentum after the International Monetary Fund (IMF) approved key financial adjustments. These include a waiver on the 18% general sales tax for new aircraft purchases and permission for the government to absorb PIA’s Rs45 billion negative equity, making the airline a more attractive investment opportunity.
During a meeting of the National Assembly’s Standing Committee on Privatisation, chaired by MNA Farooq Sattar, Privatisation Secretary Usman Bajwa updated lawmakers on the progress. He revealed that $4.3 million of the $6.8 million advisory fee to Ernst & Young had already been paid, with the remaining amount to be settled upon completion of the privatisation process.
The committee was also briefed on PIA’s extensive real estate holdings, which include 26 properties under PIA Holdings and five under the airline itself. Among these, a prime plot in Islamabad’s Blue Area, valued between Rs10-12 billion, remains under review. Additionally, PIA Holdings owns seven overseas properties, including the Scribe Hotel in Paris and the Roosevelt Hotel in New York. The Roosevelt Hotel’s lease agreement is set to expire in May, with a three-month notice period required for vacating the property.
Meanwhile, discussions also covered the privatisation of Pakistan Engineering Company (PECO), which was added to the list last August. The committee directed the privatisation secretary to consult with relevant ministries and submit a report within 40 days.
With key financial and legal obstacles addressed, the government is now pushing ahead to finalise the PIA privatisation process, hoping to attract serious investors and revive the struggling national carrier.
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