KARACHI: Pakistan’s state-owned airline PIA has received a 10 billion rupee ($35.99 million) bid from real-estate development company Blue World City, the Privatization Ministry said on Thursday without disclosing the size of the stake.
The cash-strapped country is looking to offload a 51-100 percent stake in debt-ridden Pakistan International Airlines (PIA) to raise funds and reform bleeding state-owned enterprises as envisaged under a $7 billion International Monetary Fund (IMF) program.
The government had pre-qualified six groups in June, but only one — real estate development company Blue World City — met a Tuesday deadline to submit final documents to participate in the process.
Officials from three groups that chose not to bid told Reuters on condition of anonymity that there were concerns about the government’s ability to stand by agreements made for the flag carrier in the long term.
One executive voiced concern about policy continuity once a new government came in. The government of Prime Minister Shehbaz Sharif has relied on a coalition of disparate political parties.
The disposal of PIA is a step former governments have steered away from as it has been highly unpopular given the number of layoffs that would likely result from it.
Underpinning these concerns over policy continuity and honoring contracts was the government’s termination of power purchase contracts with five private companies earlier this month, as well as the process of re-negotiating other sovereign guaranteed pacts.
Changes in Pakistan’s decade-old agreements with private Independent Power Producer (IPP) projects, largely financed by foreign lenders, to address chronic power shortages, “raises the risk of investing as well as doing business in Pakistan, even in the presence of sovereign contracts as well as guarantees,” said Sakib Sherani, an economist who heads private firm Macro Economic Insights.
Other concerns raised by potential bidders included inconsistent government communication, unattractive terms and taxes on the sector, in addition to PIA’s legacy issues and reputation.
($1 = 277.8500 Pakistani rupees)
Pakistan flag carrier PIA attracts $36 million bid from real estate company
https://arab.news/cj59g
Pakistan flag carrier PIA attracts $36 million bid from real estate company
- Pakistan is looking to offload 51-100 percent stake in debt-ridden airline to raise funds to reform state-owned assets
- Pakistan pre-qualified six groups but only Blue World City company met deadline to submit documents for auction
Pakistan air chief highlights modernization as PAF marks seven years since India aerial clash
- Swift Retort was launched in 2019 after India attempted airstrikes following a Kashmir suicide bombing
- Air chief’s remarks come amid fierce clashes between Pakistan and Afghanistan over cross-border militancy
ISLAMABAD: Pakistan’s air chief said on Friday the country’s air force had undertaken “comprehensive modernization and indigenization” in recent years, as he addressed a ceremony at Air Headquarters to mark seven years since an aerial confrontation with India.
Operation Swift Retort was launched on Feb. 27, 2019, a day after India attempted airstrikes inside Pakistan following a suicide bombing in Indian-administered Kashmir that killed at least 40 Indian paramilitary troops.
Pakistan responded with aerial strikes across the Line of Control and shot down an Indian fighter jet in a subsequent dogfight, capturing one pilot who was later returned in what Islamabad called a gesture of de-escalation.
“PAF has pursued comprehensive modernization and indigenization to transition into a Next Generation Air Force,” Air Chief Marshal Zaheer Ahmed Baber Sidhu said, according to a statement circulated by the military’s media wing, the Inter-Services Public Relations.
He added that the force had recalibrated its operational doctrine and rapidly inducted advanced combat and support capabilities, including indigenously developed unmanned systems, electronic warfare, space and cyber assets, establishing what he described as a “home-grown multi-domain kill chain.”
Sidhu said Pakistan remained committed to peace but would respond decisively to violations of its sovereignty.
“Pakistan is a responsible country which desires peace with honor,” he continued.
The remarks come amid renewed security tensions on Pakistan’s western frontier.
Islamabad earlier this week launched airstrikes inside Afghanistan targeting what it described as hideouts of Tehreek-e-Taliban Pakistan (TTP) and Daesh militants. Afghan authorities condemned the strikes and subsequently launched their own military response that led to fierce clashes between the two sides overnight.
Pakistan has frequently accused Kabul of allowing militant groups to use Afghan territory to carry out cross-border attacks on Pakistani civilians and security forces, an allegation denied by Afghan officials.
Pakistani authorities said earlier in the day small drones launched from the Afghan side were intercepted and brought down by the country’s air defense systems.
Sidhu said the PAF would continue to maintain a vigilant yet responsible defense posture to safeguard national sovereignty.
