ISLAMABAD: Pakistan is mulling transaction structure for a second attempt to sale 51-100 percent share of its loss-making national carrier, the Pakistan International Airlines (PIA), the Privatization Commission said on Tuesday.
Cash-strapped Pakistan is looking to privatize the debt-ridden PIA to raise funds and reform state-owned enterprises as envisaged under a $7 billion International Monetary Fund (IMF) program secured last year.
Late last year, a deal fell through after a potential buyer reportedly offered $36 million for a 60 percent stake in the national flag carrier, a fraction of the asking price of approximately $303 million.
On Tuesday, Muhammad Ali, Pakistan prime minister adviser on privatization, presided over the commission’s board meeting to discuss transaction structure for the divestment of the Pakistan International Airlines Corporation Limited (PIACL).
“The board recommended to CCOP (Competition Commission of Pakistan) the transaction structure proposed for the 2nd attempt of PIACL privatization based on divestment of 51 percent to 100 percent share capital of PIACL together with the management control of PIACL,” the Privatization Commission said.
“The final terms and conditions for the transfer and acquisition of equity stake shall be finalized during course of bidding process and set out in the bid documents for approval by CCOP.”
In June, the government had pre-qualified six groups, but only real-estate development company Blue World City participated in the bidding process to acquire the airline.
Among concerns raised by potential bidders for the PIA stake include policy continuity, honoring contracts, inconsistent government communication, unattractive terms and taxes on the sector, and the flag carrier’s legacy issues and reputation.
Officials say PIA’s cumulative losses alone are close to $3 billion, with the total asset valuation of the airline standing at approximately $572 million.
Earlier this year, PIA resumed operations in Europe, after a 2020 ban by the European Union Aviation Safety Agency (EASA) over concerns about the ability of Pakistani authorities and its Civil Aviation Authority (PCAA) to ensure compliance with international aviation standards.
EASA and UK authorities both suspended permission for PIA to operate in the region after Pakistan began investigating the validity of pilots’ licenses following a deadly plane crash that killed 97 people. Pakistan hopes new European routes and flying approval to the UK will boost PIA’s selling potential.
Pakistan mulls transaction structure for second attempt to privatize loss-making national airline
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Pakistan mulls transaction structure for second attempt to privatize loss-making national airline
- Last year, a deal fell through after a potential buyer reportedly offered $36 million for a 60 percent stake in PIA, a fraction of the asking price
- Pakistan is looking to privatize the debt-ridden airline to raise funds and reform state-owned enterprises as envisaged under a $7 billion IMF program
Pakistan says Iraq expressed ‘keen interest’ in JF-17 jets at air chiefs meeting
- Pakistan’s defense sector has drawn growing interest and investment since a four-day standoff with India in May last year
- Many countries have since increased defense engagement, while multiple others have proposed learning from Pakistan’s expertise
ISLAMABAD: Pakistan’s military said on Saturday that Iraq had shown “keen interest” in its JF-17 Thunder and Super Mushshak aircraft at a meeting between chiefs of the two air forces.
Pakistan’s Air Chief Marshal Zaheer Ahmed Baber Sidhu called on Lt. Gen. Staff Pilot Mohanad Ghalib Mohammed Radi Al-Asadi, commander of the Iraqi Air Force, during his official visit to Iraq.
The Pakistani air chief was accorded a guard of honor at the Iraqi Air Force headquarters, symbolizing the strong bond of mutual respect, according to the Inter-Services Public Relations (ISPR), the Pakistani military’s media wing.
“Discussions focused on enhancing bilateral military cooperation, with emphasis on joint training, capacity-building and improving operational cooperation,” the ISPR said.
“The Iraqi Air Chief praised PAF’s professionalism and technological advancement, expressed interest in benefiting from PAF’s world-class training and expressed keen interest in JF-17 Thunder fighter jets, Super Mushshak trainer aircraft.”
Pakistan’s defense sector has drawn growing interest and investment, particularly since a four-day India-Pakistan military standoff in May last year. Islamabad claimed victory in the standoff, saying it had shot down six Indian aircraft, including French-made Rafale jets. India acknowledged losses but did not specify a number.
Many countries have since stepped up defense engagement with Pakistan, while delegations from multiple other nations have proposed learning from Pakistan Air Force’s multi-domain air warfare capabilities that successfully demonstrated how advanced Chinese military technology performs against Western hardware.
Pakistan markets the Chinese co-developed JF-17 as a lower-cost multi-role fighter and has positioned itself as a supplier able to offer aircraft, training and maintenance outside Western supply chains.
Islamabad is in the final phases of striking a $1.5-billion deal to supply weapons and jets to Sudan in a major boost for Sudan’s army that has been battling the paramilitary Rapid Support Forces, Reuters reported this week, citing a former top air force official and three sources.
The South Asian country reached a deal worth over $4 billion to sell military equipment to the Libyan National Army, Reuters report last month, citing Pakistani officials. The deal, one of Pakistan’s largest-ever weapons sales, included the sale of 16 JF-17 fighter jets and 12 Super Mushshak trainer aircraft for basic pilot training.
