ISLAMABAD: Pakistan’s national flag carrier received a Rs10 billion [$36 million] bid from real estate development company Blue World City on Thursday for sixty percent of its stakes during a televised auction, much below the minimum price for the airline set by the government.
Pakistan plans to sell more than 51 percent of its stake in the loss-making Pakistan International Airlines (PIA) as part of economic reforms Islamabad agreed to with the International Monetary Fund (IMF) for a critical 37-month $7 billion bailout deal approved in September.
Pakistan’s government had pre-qualified six groups in June, but only real estate development company Blue World City met a Tuesday deadline to submit final documents to participate in the auction.
The state-owned Pakistan Television (PTV) broadcast the bidding process live, with Blue World City as the sole bidder. The bid for $36 million was read out in front of government officials and financial advisers. The government had set a minimum price of Rs85 billion [$305 million] for the airline.
“We have considered your match price option,” Blue World City Chairman Saad Nazir said during the event. “We have decided to stand with the price we have already submitted.”
Nazir refused to match the government’s offer of Rs85 billion, saying that as per the company’s assessment, “this was the best decision.”
“If the government doesn’t privatize [PIA], we wish the government all the best,” he said.
Pakistan’s privatization commission has allowed some time for potential bidders to see if any would outmatch Blue World City’s bid.
“The government couldn’t get the fair price of the PIA through the auction due to the single bidder,” Haroon Sharif, a former member of the cabinet committee on privatization, told Arab News.
“There was no competition to purchase stakes of the national carrier.”
The government’s initial plan was to finalize the deal to sell PIA on the country’s Independence Day, Aug. 14, but the plan was delayed following requests from bidders waiting for the airline’s latest audited accounts, aircraft lease agreements and clarity on flights to Europe, which are currently banned.
This auction was delayed to September and October but those also did not materialize.
Sharif said the government should have extended the auction’s deadline to involve more bidders in the process.
“Now it looks like the government is privatizing the PIA in desperation,” he noted.
Official data available with Arab News shows there are 88 commercially operated state-owned enterprises in Pakistan, with collective losses of up to Rs730.258 billion ($2.61 billion) in the fiscal year 2022 (FY22).
In its five-year privatization plan ending in 2029, the government has approved 24 state-owned enterprises for sale, including the PIA.
With a fleet of 34 aircraft comprising 17 Airbus A320s, 12 Boeing B777s and 5 ATRs, the PIA loses traffic to Middle Eastern carriers who have a market share of 60 percent, because of an absence of direct flights to destinations.
The carrier has air service pacts with 87 countries, and landing slots at key destinations such as London Heathrow.
The reorganization plan of the business will separate the aviation-related aspects from non-core components, so freeing the operating subsidiary of a large portion of legacy debt.
Pakistan’s national airline attracts $36 million bid from real estate company
https://arab.news/ytjhy
Pakistan’s national airline attracts $36 million bid from real estate company
- Sole bidder Blue World City refuses to match government’s minimum price for Pakistan International Airlines
- Pakistan plans to sell over 51 percent of its stake in loss-making PIA as envisaged under an IMF deal this year
Pakistan urges pilgrims to complete Saudi biometrics as Hajj preparations gain pace
- Government warns pilgrims biometric verification is required for Hajj visas
- Step follows tighter oversight after last year’s Hajj travel disruptions
ISLAMABAD: Pakistan’s government on Friday urged aspiring pilgrims to complete mandatory Saudi biometric verification for Hajj visas, as preparations for the 2026 pilgrimage gather pace following stricter oversight of the Hajj process.
The announcement comes only a day after Pakistan’s Religious Affairs Minister Sardar Muhammad Yousuf said regulations for private Hajj operators had been tightened, reducing their quota following widespread complaints last year, when tens of thousands of pilgrims were unable to travel under the private Hajj scheme.
“Saudi biometric verification is mandatory for the issuance of Hajj visas,” the Ministry of Religious Affairs said in a statement, urging pilgrims to complete the process promptly to avoid delays.
“Hajj pilgrims should complete their biometric verification at home using the ‘Saudi Visa Bio’ app as soon as possible,” it added.
The statement said the pilgrims who were unable to complete biometric verification through the mobile application should visit designated Saudi Tasheer centers before Feb. 8, adding that details of the centers were available on Pakistan’s official Hajj mobile application.
Pakistan has been steadily implementing digital and procedural requirements for pilgrims ahead of Hajj 2026, including mandatory training sessions, biometric checks and greater use of mobile applications, as part of efforts to reduce mismanagement.
Saudi Arabia has allocated Pakistan a quota of 179,210 pilgrims for Hajj 2026, with the majority of seats reserved under the government scheme and the remainder allocated to private tour operators.
