Privatization of PIA will be completed by December, the Senate committee said

• The due diligence process is nearing completion, officials say.
• Privatization to follow the set schedule, ensures supply.
• Afanullah-led committee reviews progress on PIA sale.

ISLAMABAD: The Senate Standing Committee on Privatization, chaired by Senator Afnanullah, was briefed on the ongoing privatization process of the national carrier during its meeting in Islamabad.

Officials of the Privatization Commission informed the committee that the process to privatize Pakistan International Airlines (PIA) is underway and expected to be completed by December this year.

Committee representatives said the site due diligence process is nearing completion. They added that the privatization will be completed within the set schedule as per the government’s plan.

According to the briefing, four consortiums are currently involved in the process, looking into PIA’s accounts, aircraft and flight schedules.

The committee was assured that all necessary measures are being taken to ensure transparency and timely completion of the privatization process.

The statements come as Islamabad moves forward with a new push to privatize the national carrier, a key condition under Pakistan’s $7 billion International Monetary Fund (IMF) bailout package.

The government’s previous attempt to privatize the entity failed as the property firm’s $36 million bid fell short of the $305 million floor price, with concerns over debt, staffing and limited control.

This time, the government is offering full divestment, has eliminated the sales tax on leased aircraft and is providing limited protection from legal and tax claims. About 80% of the airline’s debt has been transferred to the state.

“We are targeting Rs 86 billion in privatization revenue this year,” Privatization Minister Muhammad Ali said. Reuters. “For PIA, in the last round of bidding, 15% of the revenue went to the government, with the rest remaining within the company.”

Meanwhile, the renewed efforts have attracted interest from local business groups – including Airblue, Lucky Cement, Arif Habib Group and Fauji Fertilizer – with final bids expected later this year.

PIA has resumed flights to the UK, more than five years after the ban was lifted over a fake pilot license scandal in July. Its European flights resumed in January after a four-year ban.