ISLAMABAD: Punjab Chief Minister Maryam Nawaz proposed acquiring the country’s national flag carrier and renaming it as “Air Punjab,” her father and ruling party chief Nawaz Sharif said this week, days after Islamabad started the bidding process for the state-owned asset.
Pakistan’s government kickstarted the privatization process of the loss-making Pakistan International Airlines (PIA) flag carrier on Thursday, holding a televised auction in which it received the sole bid of Rs10 billion ($36 million) from Blue World City, a real estate development firm.
The bid fell far short of the minimum price of Rs85 billion ($305 million) set by the government, following which Pakistan’s Khyber Pakhtunkhwa (KP) province formally offered to exceed the bid on Friday, saying that the PIA should remain under government control to preserve its status.
“Maryam said to me during consultations, “Shouldn’t we acquire the PIA and establish a brand new airline? Bring in brand new planes and that we should give a new airline to Pakistan,” Sharif said to members of his party in New York during a meeting.
“She told me to name it as ‘Air Punjab.’“
The former prime minister said he told the Punjab chief minister to weigh the option of buying the PIA or the possibility of the Punjab government establishing a new one altogether.
“We could introduce a new airline that would offer direct flights from Karachi, Lahore, Peshawar, and Quetta to New York, along with services to London, Tokyo, Hong Kong, and other international destinations,” Sharif said.
He said the Punjab government was holding consultations on the matter.
Pakistan decided to move ahead with PIA’s privatization under terms agreed with the International Monetary Fund (IMF) for a 37-month, $7 billion bailout approved in September, aiming to divest over 51 percent of its stake in the financially struggling national carrier.
Critics, including PIA union representatives and independent analysts, called the low bid an “embarrassment” for the government, with airline employees suggesting Pakistani authorities should expand PIA’s fleet to restore its operational viability.
