Pakistan's National Airline Attracts New Interest Amidst Privatisation Efforts

In a significant move to privatize its struggling national airline, Pakistan has attracted interest from five potential buyers, including prominent business groups and a military-backed entity, as revealed by the Privatisation Ministry on Thursday.

Bids were submitted before the June 19 deadline to acquire up to 100% of Pakistan International Airlines (PIA), which has incurred losses exceeding $2.5 billion over the past decade. Despite these setbacks, the airline achieved its first operating profit in 21 years for the fiscal year ending June 2024, following a major restructuring initiative. This sale is anticipated to be a crucial step in Pakistan's effort to divest loss-making state enterprises, aligning with conditions set forth by a $7 billion International Monetary Fund bailout agreement. It marks the country's first major privatization venture in nearly 20 years.

Although eight parties submitted expressions of interest, only five met the qualification requirements, according to a statement from the ministry.

(With inputs from agencies.)