Govt resumes push for PIA privatisation process
Business
The Privatisation Commission Board is expected to meet this week
(Web Desk) - The government is gearing up to restart the privatisation process of Pakistan International Airlines (PIA) this week, aiming to rejuvenate the national carrier after years of financial struggles and regulatory challenges.
An official from the Ministry of Privatisation Commission confirmed that the new phase will begin with the hiring of a Financial Adviser.
The Privatisation Commission (PC) Board is expected to meet this week, tentatively on Tuesday (today), to approve the recruitment process for the adviser.
This renewed effort follows a major development: the European Commission and the European Aviation Safety Agency (EASA) have lifted their three-year suspension on PIA, clearing the way for the airline to resume flights to Europe.
PIA has announced plans to restart its European operations in January 2024, beginning with flights to Paris.
PIA faced a ban from EASA in 2020 after a tragic crash in Karachi claimed nearly 100 lives, followed by revelations of irregularities in pilot licensing.
The ban barred the airline from its key European and British routes, severely impacting its operations and financial stability.
While the lifting of the ban has improved PIA’s prospects, the privatisation process still faces hurdles.
In October, the Blue World City consortium, the sole bidder for PIA’s 60% stake, declined to meet the government’s minimum expectation of Rs85.03 billion, instead offering Rs10 billion, effectively stalling the earlier bidding process.
The government’s move to revive PIA’s privatisation coincides with the lifting of regulatory barriers, which had deterred potential bidders. An official privy to the process expressed optimism, stating, “The lifting of the EASA ban changes the landscape for PIA, making it a more attractive prospect for investors.”
With this renewed effort, the government hopes to attract credible buyers and position PIA for a sustainable future, leveraging its regained access to lucrative international routes.
