KARACHI: A business group in Canada led by a Pakistani expat has offered the Pakistan government around Rs100 billion ($358 million) to acquire its debt-ridden national carrier, Pakistan International Airlines (PIA), a letter written by the group’s CEO earlier this month shows.
Cash-strapped Pakistan was looking to offload a 51-100 percent stake in debt-ridden PIA to raise funds and reform state-owned enterprises as envisaged under a $7 billion International Monetary Fund program. The process, however, hit a snag last month when the final bidding round attracted just one bid of Rs10 billion ($36 million) for a 60 percent stake in the national flag carrier.
The offer letter by the Al-Nihang’s Group, dated Nov. 3, has been sent to the ministries of aviation, defense and privatization as well as the Establishment Division and the Planning Commission.
“I am writing to formally present an offer to acquire PIA at a valuation of PKR 100 billion in recognition of its invaluable role as Pakistan’s national carrier,” Al-Nihang’s CEO Faqir Muhammad M Ali said in the letter.
“Al-Nihang’s Group will acquire the full shareholding of PIA in accordance with the terms outlined in the tender proposal, assuming comprehensive ownership.”
Among proposed acquisition conditions, the group will be responsible for PIA’s existing liabilities, amounting to approximately Rs250 billion ($896 million), and ensure all outstanding payments. It would also retain all current PIA employees for a period of 2-3 years and commit to continue paying salaries and benefits.
There has been no comment as yet from Pakistani authorities regarding the offer.
Little information could be found online about Al-Nihang’s group, but the website of the group’s CEO said he served as a magistrate in Jhang from 1992 to 1994, and was the youngest nominated senator in 1996. Since then, he has worked in the UK and Canada, where he helped negotiate an airline treaty between Pakistan and Canada and also served as the president of the Pakistan Canada Association of Hamilton, according to the website.
The government had pre-qualified six groups for PIA’s privatization process in June, but only real-estate development company Blue World City participated in the bidding process last month, placing a bid that was below the government-set minimum price of Rs85 billion ($304 million).
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.
Other concerns raised by potential bidders for the PIA stake included inconsistent government communication, unattractive terms and taxes on the sector, and the flag carrier’s legacy issues and reputation.
Pakistani-led Canadian group Al-Nihang offers $358 million to acquire PIA
https://arab.news/jau6p
Pakistani-led Canadian group Al-Nihang offers $358 million to acquire PIA
- Plans to privatize national carrier hit a snag when bidding process last month attracted just one bid
- Al-Nihang’s will be responsible for PIA’s existing liabilities of $896 million, retain all employees for 3 years
Uzbekistan president arrives in Pakistan to increase trade, defense, energy cooperation
- Uzbek President Shavkat Mirziyoyev leads high-level delegation of ministers, business leaders on Feb. 5-6 visit, says state media
- Visit takes place days after Pakistan, Uzbekistan reaffirmed $2 billion trade target during intergovernmental commission meeting
ISLAMABAD: Uzbekistan President Shavkat Mirziyoyev arrived in Pakistan’s capital Islamabad on Thursday, with a high-level delegation to identify new avenues for bilateral cooperation in trade, defense, energy and other avenues, state-run media reported.
The visit takes place after the 10th session of the Pakistan–Uzbekistan Intergovernmental Commission (IGC) on Trade, Economic and Scientific-Technical Cooperation was held in Islamabad on Feb. 2. Both sides reaffirmed their $2 billion trade target and agreed to push for regional connectivity, develop trade routes and accelerate cooperation in several sectors.
Mirziyoyev was given a red-carpet welcome when his aircraft landed at the Nur Khan Airbase, the state-run Associated Press of Pakistan (APP) said. He was welcomed by President Asif Ali Zardari, Prime Minister Shehbaz Sharif and senior members of the cabinet.
“Discussions will focus on reviewing the entire gamut of bilateral relations and identifying new avenues to further deepen cooperation in diverse sectors, including trade, energy, defense, education, people-to-people exchange and regional connectivity,” APP reported.
The Uzbek president will meet President Zardari, hold delegation-level talks with Prime Minister Sharif, and address the Pakistan-Uzbekistan Business Forum during his visit.
Mirziyoyev’s visit takes place two days after Kazakhstan President Kassym-Jomart Tokayev arrived in Islamabad to hold talks on trade, business and connectivity.
Pakistan and Kazakhstan signed 37 memoranda of understanding (MoUs) and set a target of raising bilateral trade to $1 billion within a year during Tokayev’s visit.
Pakistan and Uzbekistan have steadily increased economic ties in recent years as Islamabad seeks greater access to landlocked Central Asian markets, aiming to position itself as a regional transit and trade hub linking South Asia with Central Asia.
Pakistan was the first Central Asian partner with which Uzbekistan signed a bilateral Transit Trade Agreement, along with a Preferential Trade Agreement in March 2022, covering 17 items, which became operational in 2023.
Pakistan’s finance ministry said last month that Azerbaijan’s state energy company SOCAR was set to finalize an investment in the country’s oil and gas sector following high-level engagements at the World Economic Forum in Davos.
