Pakistan’s national airline sale stalls as bid falls short of government expectations

Pakistan International Airlines (PIA) ATR aircraft arrives at the Islamabad International Airport in Islamabad on October 31, 2024. (AFP)
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Updated 01 November 2024
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Pakistan’s national airline sale stalls as bid falls short of government expectations

  • Sole bidder Blue World City declines to meet government’s minimum price of $305 million
  • PIA employees’ union labels the stalled sale an ‘embarrassment’ for Pakistani authorities

ISLAMABAD: Pakistan’s Privatization Ministry said on Friday the national airline’s privatization has stalled after months of efforts, as the sole bid came in “too low” compared to government expectations, which the airline employees’ union and an economist called a “major embarrassment” for the authorities.
The national flag carrier received a Rs10 billion ($36 million) bid from real estate development company Blue World City a day earlier for 60 percent Pakistan International Airlines (PIA) stakes during a televised auction, far below the minimum price of Rs85 billion ($305 million) set by the government.
The country plans to sell more than 51 percent of its stake in the loss-making national air carrier 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 pre-qualified six groups in June, but only the real estate development company met a Tuesday deadline to submit final documents to participate in the auction.
“The airline’s sale process has stalled for now, but the Privatization Commission Board will review the bid offer in its next meeting,” Dr. Ahsan Ishaq, a spokesperson for the Privatization Ministry, told Arab News, without specifying a date for the meeting.
“Finally, the matter will go to the federal cabinet for approval, but obviously, the bid is too low compared to government expectations,” he added. “Therefore, it may not receive formal assent.”
The state-owned Pakistan Television broadcast the bidding process live, with Blue World City as the sole bidder.
The $36 million bid was read out in front of government officials and financial advisers, which the PIA employees’ union later described as a “major embarrassment” for the authorities.
“The government should add at least twenty planes to the PIA fleet on dry lease to make it a profitable airline instead of selling it for peanuts,” said Hidayatullah, president of the PIA employees’ union, who goes by a single name, while speaking to Arab News.
“We will not allow the privatization of this national asset, and we will launch a nationwide protest if the government goes ahead with this bid,” he said.
During the bidding event, Blue World City Chairman Saad Nazir refused to match the government’s minimum price of Rs85 billion, saying, as per his company’s assessment, the offer made was “the best decision.”
The government’s initial plan was to finalize the PIA sale on the country’s Independence Day, August 14, but the plan was delayed following requests from bidders who were awaiting the airline’s latest audited accounts, aircraft lease agreements and clarity on flights to Europe, which are currently banned.
The auction was postponed twice, first to September and then to October, but neither event materialized.
Dr. Vaqar Ahmed, a senior economist, said the government had failed to “hunt potential investors” for PIA ahead of the formal auction and did not organize roadshows to market the airline’s assets to attract major investors.
“Major foreign investors have already expressed serious reservations about difficulties in repatriating their profits from investments in various sectors,” he told Arab News. “Therefore, they were apprehensive about joining the bidding process.”
“The government should have initiated measures to address the concerns of major investors and businesses ahead of formally launching the auction process for PIA to attract a fair price for the airline,” he continued.
Official data available to Arab News shows that there are 88 commercially operated state-owned enterprises in Pakistan, with collective losses amounting to Rs730.258 billion ($2.61 billion) in the fiscal year 2022.
In its five-year privatization plan ending in 2029, the government approved 24 state-owned enterprises for sale, including PIA.
With a fleet of 34 aircraft comprising 17 Airbus A320s, 12 Boeing B777s, and 5 ATRs, PIA loses market share to Middle Eastern carriers, who dominate with 60 percent due to the absence of direct flights to key destinations.
The carrier has air service pacts with 87 countries and landing slots at significant destinations such as London Heathrow.
The reorganization plan will separate aviation-related operations from non-core components, thereby freeing the operating subsidiary from a large portion of legacy debt.


Gaza, Lebanon humanitarian crises in focus as Pakistan attends D8 summit in Cairo next week

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Gaza, Lebanon humanitarian crises in focus as Pakistan attends D8 summit in Cairo next week

  • D8 summit is gathering of leaders forms eight developing countries to promote economic cooperation and development
  • Ongoing Israeli military campaign in Gaza has killed over 44,000 people, injured thousands since Oct 7, 2023 Hamas attack 

ISLAMABAD: Pakistan will participate in the 11th D8 summit in Egypt next week where Israel’s military offensive on Gaza and the humanitarian crisis and reconstruction efforts in Lebanon will be at the center of discussions, the foreign office said.

The D8 Summit is a gathering of leaders from eight developing countries including Bangladesh, Egypt, Indonesia, Iran, Malaysia, Nigeria, Pakistan, and Turkiye. It aims to promote economic cooperation and development among member states, with a focus on areas like trade, energy, agriculture, and transportation.

The ongoing Israeli military campaign in Gaza has killed more than 44,000 people and injured thousands more since Oct 7, 2023 attacks by Hamas in which Israel says 1,200 people were killed and 250 taken hostage. Israel also stepped up its campaign in south Lebanon in late September after nearly a year of cross-border exchanges begun by Hezbollah in support of its ally Hamas.

“Pakistan will be participating in the D8 summit being held in Cairo on Dec. 19,” Foreign Office spokesperson Mumtaz Zahra Baloch said during a weekly press briefing on Thursday. “The D8 summit will also have a special session on humanitarian crisis and reconstruction challenges in Gaza and Lebanon.”

She said Pakistan would also participate in the D8 Council of Ministers meeting, reaffirming that the South Asian nation supported the D8 agenda and would work toward the summit’s success.

The D8 summit was last held virtually in 2021 during the COVID-19 pandemic. 

The theme of this year’s summit is “investing in youth and supporting small and medium enterprises (SMEs) shaping tomorrow’s economy.”


Pakistanis stranded in Syria arrive home on chartered flight from Beirut

Updated 9 min 2 sec ago
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Pakistanis stranded in Syria arrive home on chartered flight from Beirut

  • More than 1,300 Pakistanis had been stranded in Syria since last week
  • Pakistani PM sought Lebanon’s assistance in evacuating expats via border 

ISLAMABAD: Over 300 Pakistanis have arrived in Islamabad from Beirut on a chartered flight as Pakistan continues evacuation operations to bring home citizens stranded in Syria since opposition forces toppled former president Bashar Assad’s regime, the prime minister’s office said on Friday.

More than 1,300 Pakistanis were stranded in Syria since last week when opposition forces seized the capital of Damascus unopposed following a lightning advance that sent Assad fleeing to Russia on Sunday.

While Pakistan’s foreign office initially said the Pakistanis would be evacuated once the Damascus airport reopened, PM Shehbaz Sharif on Monday sought his Lebanese counterpart Najib Mikati’s “personal intervention” to evacuate citizens via land routes through the border with Syria. 

“318 Pakistani citizens in Syria, including pilgrims and staff, have been brought to Islamabad, Pakistan, from Beirut, Lebanon, in a chartered plane,” the Pakistani PM’s office said in a statement.

On the directions of  Sharif, the National Disaster Management Authority, in collaboration with the Ministry of Foreign Affairs, had prepared a “comprehensive plan” and finalized arrangements for the safe evacuation of Pakistani citizens, the statement added.

“Prime Minister also thanked the Prime Minister of Lebanon, Mr. Najib Mikati, whose government provided all possible cooperation and assistance for the return of Pakistanis via Beirut,” the PMO said. “The Prime Minister has also directed the relevant authorities to continue taking immediate steps to evacuate more Pakistani citizens from Syria.”

Pakistanis Arab News spoke to this week described 12-hour-long bus rides, multiple check posts, interrogations and bills piling on as they left the war-torn nation by road through neighboring Lebanon.

The closure of Syria’s airports and borders with Jordan and Oman had posed a “major challenge” to the repatriation effort, the foreign office said. 


Pakistan Test team head coach Gillespie resigns

Updated 58 min 37 sec ago
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Pakistan Test team head coach Gillespie resigns

  • Gillespie refused to join  squad on tour of South Africa over disagreements with country's cricket board
  • Pakistan, with history of sacking coaches, have had six different coaches in all formats in the last four years 

KARACHI: Jason Gillespie resigned from his role as coach of the Pakistan Test team on Thursday after refusing to join the squad on their tour of South Africa over disagreements with the country's cricket board.

The former Australia bowler was appointed head coach on a two-year deal in April, with former South Africa opener Gary Kirsten named white-ball coach.

Kirsten resigned in October for similar reasons.

The Pakistan Cricket Board (PCB) confirmed Gillespie's resignation.

"The PCB has named former Pakistan paceman Aaqib Javed as interim red-ball head coach following the resignation of Gillespie," a PCB statement said.

Aaqib, who also replaced Kirsten as interim white-ball coach, will now oversee the two-Test series in South Africa, starting in Centurion from December 26.

The second Test will be played in Cape Town from January 3-7.

Pakistan's white-ball squad is currently in South Africa for a three-match T20 series and three one-day internationals.

Gillespie was removed from the selection panel following Pakistan's 2-0 whitewash at the hands on Bangladesh in September and losing the first Test by an innings against England a month later.

Pakistan won the next two Tests against England, taking the series 2-1, on sharply spinning pitches.

Gillespie did not hide his sentiments, saying he was frustrated.

"I think there's always frustrations from time to time," Gillespie said, in an interview with Sky Sports during the second England Test.

"It wasn't what I signed up for, I'll be completely honest."

After the England series, Gillespie served as white-ball coach on Pakistan's tour of Australia but was not given the job for the series in Zimbabwe.

Gillespie was reportedly not happy after the contract of his assistant Tim Nielsen was not renewed by the PCB.

Pakistan have a history of sacking coaches in the recent past. They have had six different coaches in all formats in the last four years.

 

 


Pakistan opens foreign players’ registration process for premier cricket league

Updated 13 December 2024
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Pakistan opens foreign players’ registration process for premier cricket league

  • Pakistan Super League is a men’s Twenty20 cricket league contested by six city-based franchise teams
  • PCB says relegation process and retention of players will be carried out during the ongoing month

ISLAMABAD: The Pakistan Cricket Board (PCB) this week announced it had opened the registration process for foreign players to take part in the 10th edition of the Pakistan Super League (PSL), the country’s premier cricket league, slated to be held next year. 

Founded in 2015, the PSL is a men’s Twenty20 cricket league contested by six city-based franchise teams. It features a mix of Pakistani and foreign cricket stars who play side-by-side in the franchises. 

“The registration window for foreign players to register themselves for the 10th edition of HBL Pakistan Super League (PSL) along with the trade window is now open,” the PCB said on Thursday. “The category renewals of the players will be announced on Tuesday, 17 December.”

The PCB said that the relegation process and retention of players will be carried out during the ongoing month.

The HBL PSL Players’ Draft is scheduled to take place on Jan. 11, 2015, the board said. The venue and time for the draft will be announced in due course, it added. 

“We are thrilled to announce the opening of the registration process for foreign players as well as the trade window,” the PCB said. “This marks an exciting beginning to preparations for the highly anticipated 10th edition of the HBL Pakistan Super League.”

 Since 2016, Islamabad United have become champions of the HBL PSL thrice, which include the opening (2016), third (2018) and last edition (2024) of the league. 

Lahore Qalandars have won twice in 2022 and 2023, while Peshawar Zalmi remained champions of the 2017 edition. 

Quetta Gladiators won the 2019 edition while Karachi Kings clinched their maiden title in 2020 and the Multan Sultans emerged as the winners in 2021. 


Pakistan Senate unanimously passes resolution condemning Israel’s campaigns against Gaza, Syria

Updated 13 December 2024
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Pakistan Senate unanimously passes resolution condemning Israel’s campaigns against Gaza, Syria

  • Pakistan Peoples Party Senator Sherry Rehman moves resolution urging international community to protect Palestinian lives
  • Senate condemns Israel’s “exploitation of political vacuum” in Syria after the fall of Bashar Assad’s government in the country

ISLAMABAD: Pakistan’s upper house of parliament, the Senate, passed a unanimous resolution on Thursday condemning Israel’s bombardment of Gaza and Syria, urging the international community to intervene and protect Palestinian lives, state-run media reported. 
Israel’s military campaign in Gaza has killed more than 44,000 people and injured thousands more since the Oct. 7, 2023 attacks by Hamas in which Israel says 1,200 people were killed and 250 taken hostage. 
Israel has also attacked Syria since the fall of Bashar al-Assad’s government this month and conducted a military incursion into the buffer zone separating the two countries since 1974, despite protests from the UN.
“The Senate on Thursday passed a resolution unanimously condemning Israel’s bombardment extending to many countries,” the Associated Press of Pakistan (APP) reported. 
The resolution was moved by Pakistan Peoples Party (PPP) Senator Sherry Rehman on behalf of all political parties.
As per the resolution, the Senate strongly condemned Israel’s blatant disregard for international law, particularly in its actions against Palestine and urged the Jewish state be held accountable for them.
The Senate also condemned Israel for its “exploitation of the political vacuum” in Syria following Assad’s government. 
“This agenda now extends beyond Palestine to violations of the sovereignty of Syria and many other countries,” the resolution said. 
Calling for immediate accountability for Israel’s actions, the Senate also condemned the killing of United Nations Relief and Works Agency (UNRWA) team members in the Middle East. 
Israel has killed 249 UNRWA staff members in its military campaigns carried out up till November this year, it added.
“Such attacks are a blatant violation of United Nations General Assembly Resolution 302; which mandates UNRWA’s role in providing critical humanitarian assistance to vulnerable populations,” the resolution said. 
Pakistan’s upper house of parliament also condemned the targeted killing of over 180 journalists during Israeli bombings in Gaza along with the destruction of critical infrastructure including hospitals, schools and even residential areas.
“The Senate reaffirms Pakistan’s unwavering support for the Palestinian cause, recognizing it as a moral, political, and legal obligation. Pakistan reiterates its consistent support for the two-state solution of the Palestinian issue, as enshrined in relevant Security Council and General Assembly resolutions,” the resolution stated. 
The Senate also urged the international community to take action to “protect Palestinian lives, hold Israel accountable for war crimes and ensure compliance with international humanitarian law.”
Since the beginning of Israel’s war on Gaza, Pakistan has repeatedly raised the issue at the UN, the Organization of Islamic Cooperation and other multilateral platforms, demanding international powers and bodies stop Israeli military actions in Gaza.
Pakistan has dispatched a total of 1,273 tons of relief items to the war-affected people of Gaza until Nov. 27, according to the National Disaster Management Authority.
The South Asian nation does not recognize nor have diplomatic relations with Israel and calls for an independent Palestinian state based on “internationally agreed parameters” and the pre-1967 borders with Al-Quds Al-Sharif as its capital.