Govt to launch a new bidding process to sell PIA 51-100% share next week

• Last year, Govt got an offer under $ 300 million.
• The sale aims to raise funds and support IMF reforms.
• The new bids were approved after resolving last year’s problems.

Islamabad: The government will seek expressions of interest next week for the sale of Pakistani International Airlines (PIA), the Ministry of Privatization said on Thursday, days after the announcement of its first annual profit in more than two decades.

Authorities seek to sell a 51-100% share of the debt-based airline and reform of state-owned businesses owned by state-owned businesses, as provided for in an international monetary capital program of $ 7 billion.

Its failed attempt to privatize PIA last year received a single offer, well below the requested price of more than $ 300 million.

The Council of the Privatization Committee approved the search for new bids, the ministry said in a statement.

“The Board of Directors approved the pre -selection criteria for selecting prospective candidates,” he said. Added new expressions of interest in the market between 51 and 100% of the airline will be searched next week.

Pakistan has shifted almost all the debt of the national carrier’s heritage to government books after issues raised by candidates have led to the failure of the latest privatization attempt.

Mohammed Ali, a privatization adviser, said last week all the issues raised during last year’s failed effort.

The government plans to complete the privatization of the airline before the end of this year.

Prime Minister Shehbaz Sharif last year announced plans to sell all bookings.

The adviser in last week’s statement said that the privatization process of electricity distribution companies began, defining the “high priority transaction”.

He said that some companies previously sold in the second phase were promoted to the first phase.

The adviser said the government had appointed Jones Lang Lasalle to advise on exploring different sales options for the Roosevelt Hotel owned by PIA in Manhattan, New York.

They include the sale of the building as it is or choosing a consortium with a top programmer who has the ability to produce revenue five times higher, Ali said.