KARACHI: Privatization Minister Abdul Aleem Khan has said that the center would welcome bids from Pakistan’s Punjab and Khyber Pakhtunkhwa (KP) and other provinces for the national flag carrier, stressing that the Pakistan International Airlines (PIA) was a “national asset” which his government would not sell for trinkets. 

Khan’s statement comes after the government kickstarted the loss-making PIA’s privatization process 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. The KP government formally offered to exceed the bid on Friday, saying the airline should remain under government control to preserve its status. 

Former prime minister Nawaz Sharif, chief of the ruling Pakistan Muslim League-Nawaz (PML-N) party and father of Punjab Chief Minister Maryam Nawaz, said last week that the Punjab government was mulling acquiring the PIA and renaming it “Air Punjab.”

Speaking to reporters on Sunday, Khan said it was not his job as privatization minister to reform the national flag carrier rather it was his job to sell the airline in “whatever condition it is in.”

“It is a very good development that if the KP, Punjab, Sindh or Balochistan governments want to acquire it [PIA] together, why would we object,” Khan asked. “We would be very happy if all of you acquire it and bring in a very professional management.”

Khan defended the PIA’s privatization process, saying that his government will ensure the process is conducted in a very efficient manner. 

“PIA is our national asset, I cannot sell it for trinkets,” he said. “I can sell any personal belonging of mine even for free [but not a national asset].”

Separately, Sindh Governor Kamran Tessori said Karachi’s traders are interested in acquiring the national airline. 

“Karachi’s businesspersons are constantly contacting me to talk about the airline’s matters,” Tessori wrote on social media platform X on Monday. “Karachi’s businesspersons want the PIA to be given to them for a year and they are also interested in starting a new airline,” he added. 

The Sindh governor said he had advised Karachi’s businesspersons to name any new airline they would manage as “PK” in which P would stand for Pakistan and K for Karachi. 

“If Karachi Air is started, it would provide additional opportunities for jobs,” Tessori said. “I want to become the voice of the traders and give this country and its people jobs and prosperity.”

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, last week called the $36 million bid an “embarrassment” for the government, with airline employees suggesting Pakistani authorities should expand PIA’s fleet to restore its operational viability.

A popular airline during its heydays in the ‘60s and ‘70s, PIA has grappled with financial losses, mismanagement, and operational challenges in recent years. It has also been burdened by a high debt load, inefficiencies, and corruption allegations, resulting in an overall decline in its financial performance.

The disposal of the flag carrier is a step that past elected governments have steered away from as it is expected to be unpopular with the masses.