Pakistan's National Airline: A High-Stakes Bidding Battle
Pakistan's government plans to privatize Pakistan International Airlines, with bids from major business groups and the military-backed Fauji Fertilizer Company. The airline was offloaded of most of its debt last year, and its financial turnaround is attracting interest despite concerns about staffing. Its recent operating profit and route resumption bolster appeal.
The government of Pakistan is initiating the privatisation of Pakistan International Airlines (PIA), drawing interest from some of the country's foremost business groups and a military-backed company. This move, significant for being the first of its kind in two decades, aspires to revive state-run enterprises, meet conditions of a significant IMF bailout, and alleviate the financial burden PIA has placed on the national budget.
High-profile bidders lining up for the sale include the Yunus Brothers Group and a consortium led by Arif Habib Limited. Additionally, Fauji Fertilizer Company, which holds military ties, is entering the fray. Alongside these powerful players, a group of PIA employees is also contemplating a bid, driven by motivations to safeguard jobs and revitalize the airline.
Recent developments such as PIA's first operational profit in 21 years, the removal of upfront sales tax on aircraft leases, and resumed European routes are making the sale more attractive. However, the success of this privatisation hinges on the government's willingness to transfer full ownership, resolving previous hurdles that led to a failed sale attempt.
(With inputs from agencies.)
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