Five groups submit qualification documents in Pakistan’s renewed push to privatize PIA

Pakistan International Airline (PIA) aircraft taxis ahead of its takeoff for Paris at the Islamabad International Airport on January 10, 2025. (AFP/File)
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Updated 19 June 2025
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Five groups submit qualification documents in Pakistan’s renewed push to privatize PIA

  • Eight interested parties, including private firms and a military-backed group, initially submitted expressions of interest
  • Pakistan’s Privatization Commission will evaluate the qualification documents before advancing to the next stage

KARACHI: Pakistan has received qualification documents from five investor groups seeking to acquire a controlling stake in its loss-making national carrier, the Privatization Commission said on Thursday, as the government advances a long-delayed divestment plan.

The privatization of state-owned entities has been mandated by the International Monetary Fund (IMF) as Pakistan works to implement structural reforms and stabilize its economy, which has recently shown signs of macroeconomic improvement.

Pakistan International Airlines (PIA), in particular, has survived for years on government bailouts, placing further strain on the country’s already cash-strapped finances.

The government invited expressions of interest in April for a stake ranging from 51 percent to 100 percent in Pakistan International Airlines Corporation Limited (PIACL), along with management control. The final deadline for submitting Statements of Qualification (SOQs) was today.

“The Privatization Commission received Expression of Interest (EOI) from ... eight interested parties,” the official statement said, adding that “five interested parties submitted SOQs by the deadline today.”

Among the groups that submitted documents are a consortium comprising Lucky Cement, Hub Power Holdings, Kohat Cement, and Metro Ventures; a consortium led by Arif Habib Corporation with Fatima Fertilizer, City Schools and Lake City Holdings; Air Blue Limited; Fauji Fertilizer Company Limited, which is a military-backed firm; and a consortium including Serene Air, Augment Securities, Bahria Foundation, Mega C&S Holding and Equitas.

The government had previously attempted to privatize PIA in 2024 but called off the process after receiving a single bid of Rs10 billion ($36 million) from Blue World City — far below the Rs85 billion ($305 million) floor price.

The sale was scrapped, citing the airline’s weak financial position and unattractive terms for buyers.

PIA has long been a fiscal liability, with operational earnings repeatedly offset by heavy debt servicing. However, following restructuring, it reported an operating profit of Rs9.3 billion ($33.1 million) in April, its first in 21 years.

“The SOQs submitted by the parties will be evaluated by the Privatization Commission against the prequalification criteria,” the official statement informed. “The prequalified parties will proceed to the next stage where they will be given access to the virtual data room to undertake buy-side due diligence.”


Cross-border clash breaks out between Pakistan and Afghanistan amid rising tensions

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Cross-border clash breaks out between Pakistan and Afghanistan amid rising tensions

  • Border residents say exchange of fire in the Chaman border sector lasted nearly two hours
  • Both governments issue competing statements blaming the other for initiating the violence

ISLAMABAD: Pakistan and Afghanistan witnessed yet another border clash, according to officials in both countries who spoke in the early hours of Saturday, with each side accusing the other of launching “unprovoked” attacks.

Fighting erupted in Pakistan’s southwestern Chaman border sector, with an AFP report saying that residents on the Afghan side of the frontier reported the exchange of fire began at around 10:30 p.m. (1800 GMT) and continued for roughly two hours.

The incident underscored how tensions remain high between the neighbors, who have seen deadly clashes in recent months despite several rounds of negotiations mediated by Qatar and Türkiye that resulted in a tenuous truce in October.

“There has been unprovoked firing by Afghan Taliban elements in the Chaman Sector which is a reckless act that undermines border stability and regional peace,” said a Pakistani security official on condition of anonymity.

“Pakistani troops responded with precision, reinforcing that any violation of our territorial integrity will be met with immediate and decisive action,” he continued.

The official described Pakistan’s response as “proportionate and calibrated” that showed “professionalism even in the face of aggression.”

“The Chaman Sector exchange once again highlights the need for Kabul to rein in undisciplined border elements whose actions are destabilizing Afghanistan’s own international standing,” he added.

Relations between Pakistan and Afghanistan have grown increasingly bitter since the Taliban seized power in Kabul following the withdrawal of international forces in August 2021.

Islamabad accuses the Taliban administration of sheltering anti-Pakistan militant groups such as the Baloch Liberation Army (BLA) and Tehreek-e-Taliban Pakistan (TTP), which have carried out deadly attacks in its western provinces bordering Afghanistan, targeting civilians and security forces.

The Taliban deny the charge, saying Pakistan’s internal security challenges are its own responsibility.

The Pakistani security official said his country remained “committed to peaceful coexistence, but peace cannot be one-sided.”

“Attempts to pressure Pakistan through kinetic adventurism have repeatedly failed and will continue to fail,” he said. “The Chaman response has reaffirmed that message unmistakably.”

He added that Pakistan’s security forces were fully vigilant and that responsibility for any escalation “would solely rest with those who initiated unprovoked fire.”

Mosharraf Zaidi, spokesman for Pakistan’s prime minister, also commented on the clashes in a social media post, saying the Afghan Taliban had “resorted to unprovoked firing along the border.”

“An immediate, befitting and intense response has been given by our armed forces,” he wrote.

https://x.com/mosharrafzaidi/status/1997025600775786654?s=46&t=JVxikSd5wyl9Y96OwifS5A

Afghan authorities, however, blamed Pakistan for the hostilities.

“Unfortunately, tonight, the Pakistani side started attacking Afghanistan in Kandahar, Spin Boldak district, and the forces of the Islamic Emirate were forced to respond,” Taliban spokesman Zabihullah Mujahid said on X.

https://x.com/zabehulah_m33/status/1997018198508818891?s=48&t=x28vcP-XUuQ0CWAu-biScA

Border clashes that began in October have killed dozens of people on both sides.

The latest incident comes amid reports of back-channel discussions between the two governments, although neither has publicly acknowledged such talks.