KARACHI: Pakistan has extended the deadline for expressions of interest (EOI) in purchasing Pakistan International Airlines (PIA) to June 19, the country’s privatization ministry said on Tuesday.
Cash-strapped Pakistan is seeking to privatize the debt-ridden PIA to raise funds and reform state-owned enterprises, as outlined in the $7 billion International Monetary Fund program secured last year.
The earlier EOI deadline was June 3.
“The deadline for submission of Expressions of Interest and Statements of Qualification for ‘Divestment of Pakistan International Airlines Corporation Limited through privatization’ has been extended till 16:00 hours on Thursday, June 19, 2025,” the ministry said in a statement.
“The remaining terms and conditions shall remain the same.”
Speaking to Arab News, a ministry official said on condition of anonymity the deadline had been extended due to Eid Al-Adha next month along with “the recent crisis situation.”
Asked if by “crisis” he meant the recent India-Pakistan military standoff and the ensuing tensions, he concisely responded, “yes.”
Pakistan has been seeking to sell a 51 percent to 100 percent stake in the debt-ridden carrier to raise funds and reform cash-draining state-owned enterprises.
The final bidding round for the privatization of PIA last October drew only one offer of $36 million for a 60 percent stake in the national flag carrier.
Although the government had pre-qualified six groups in June, only the real estate firm Blue World City submitted a bid, which fell significantly short of the government’s minimum price of $303 million.
Potential bidders raised several concerns, including lack of policy continuity, uncertainty around contract enforcement, inconsistent government communication and unfavorable terms and taxation in the aviation sector.
Last year, PIA received permission to resume operations in Europe after a 2020 ban by the European Union Aviation Safety Agency (EASA), which had raised concerns about the oversight capabilities of Pakistani authorities and the Civil Aviation Authority in ensuring compliance with international aviation standards.
EASA and UK authorities had suspended PIA’s operations in the region following a probe into pilot licensing irregularities, launched after a 2020 crash that killed 97 people.
In March this year, the government endorsed a plan to fast-track PIA privatization while reiterating its resolve to offload loss-making public entities from the national exchequer.
With input from Reuters
