ISLAMABAD: The Pakistani government will seek fresh expressions of interest for the sale of Pakistan International Airlines later this month, a government adviser said on Thursday, two days after PIA reported its first annual profit in over two decades.
Pakistan has been looking to offload a 51-100 percent stake in debt-ridden PIA, part of an effort to raise funds and reform cash-bleeding state-owned enterprises as envisaged under a $7 billion International Monetary Fund program.
However, Islamabad’s attempt to privatize PIA last year fell flat when it received only a single offer, well below the asking price of more than $300 million.
Pakistan has offloaded almost all of the national carrier’s legacy debt and shifted it to government books after bidders raised issues that had led to the failed attempt, according to the privatization ministry.
“In our last attempt to privatise PIA, pre-qualified bidders had some issues with taxation and the balance sheet. Those are taken care of now,” Muhammad Ali, government adviser on privatization, told Reuters. “We plan to publish the new Expression of Interest (EoI) by the last week of April 2025,” he said.
The government plans to complete the airline’s privatization before the end of this year.
“We are also revising the pre-qualification criteria,” he said, adding that the reference price could also be revised keeping in view the latest accounts and changes in the balance sheet.
Prime Minister Shehbaz Sharif last year announced plans to sell all SOEs.
The adviser said that the process to privatise power distribution companies had also started, terming it a “high priority transaction.”
He said some companies previously due to be sold in the second phase were being pushed into the first phase.
The adviser said the government had appointed Jones Lang LaSalle to advise on exploring different sales options for the PIA-owned Roosevelt hotel building in Manhattan, New York. They include selling the building as it is or opting for a joint venture with a top tier developer, which has the potential to generate proceeds five times higher, Ali said.
Pakistan to seek fresh bids for national airline, says adviser
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Pakistan to seek fresh bids for national airline, says adviser
- Pakistan has been looking to offload a 51-100% stake in debt-ridden PIA
- Attempt to privatize PIA last year fell flat when Pakistan got only one bid
Pakistan engages Saudi Arabia, China in bid to ease surging Middle East tensions
- Pakistan’s foreign minister stresses need for de-escalation in conversations with Chinese, Saudi counterparts
- Tensions in the Middle East continue to remain high as conflict between US, Israel and Iran intensifies
ISLAMABAD: Pakistan’s Deputy Prime Minister Ishaq Dar spoke to the foreign ministers of Saudi Arabia and China on Tuesday, stressing the importance of diplomatic engagement to de-escalate tensions in the Middle East as the Iran war intensifies.
Pakistan has constantly engaged regional countries in efforts to broker a ceasefire in the Middle East, after the US and Isreal launched coordinated strikes against Iran on Feb. 28.
Iran launched fresh attacks on Gulf countries on Tuesday morning, where it has targeted US military bases in recent weeks. In addition to firing missiles and drones at Israel and American bases in the region, Iran has also been targeting energy infrastructure which, combined with its stranglehold on the Strait of Hormuz, has sent oil prices soaring worldwide.
Dar spoke to Saudi Foreign Minister Prince Faisal bin Farhan to discuss developments in the Middle East and ongoing deliberations at the UN Security Council, Pakistan’s foreign office said in a statement.
“DPM/FM shared Pakistan’s perspective, underscoring the importance of continued coordination and diplomatic engagement to support de-escalation and promote peace and stability across the region and beyond,” the statement said.
Dar, who also serves as Pakistan’s foreign minister, spoke to Chinese foreign minister Wang Yi over the telephone separately. The two discussed the evolving regional situation and broader global developments.
Dar underscored the need to ease tensions in the Middle East and the wider region during the conversation, the foreign office said.
Yi appreciated Pakistan’s constructive efforts aimed at promoting de-escalation and stability in the region, it added.
“The two leaders stressed the importance of de-escalation and emphasized the need to pursue dialogue and diplomacy in accordance with the principles of the UN Charter,” the foreign office’s statement said.
The conflict in the Middle East has hit Pakistan hard as well, forcing Islamabad to hike petrol and diesel prices by Rs55 per liter last Friday.
Pakistan’s government has also announced a set of austerity measures, which include closing schools and cutting down on government expenditures, as it evaluates petrol stocks and looks for alternative supply routes.
