The government will make the final PIA offer by mid-December, the NA panel said

• Four consortiums enter final stage talks to sell PIA.
• Cabinet approval of PIA reserve price expected soon.
• The committee recommends five years of job security for PIA staff.

The government plans to make the final bid for Pakistan International Airlines (PIA) by mid-December, the secretary of the Department of Privatization told the standing committee of the National Assembly on Wednesday.

Briefing the committee chaired by MNA Farooq Sattar, the secretary said that four pre-selected consortiums are currently in the final stage of negotiations on trade terms, The News was mentioned.

He said talks were ongoing with the pre-selected underwriters on the share purchase and shareholder agreements. Discussions to qualify the bid have been going on for the past three days, while approval of the reserve price will be sought from the federal cabinet, the secretary said.

In early July, the Privatization Commission Board shortlisted four candidates — Fauji Fertilizer Company Ltd, Air Blue (Pvt) Ltd, a consortium of Lucky Cement, Hub Power Holdings, Kohat Cement and Metro Ventures, and an Arif Habib Corporation-led consortium with Fatima Fertiliser, City Holding Schools and Lake. On November 7, the board approved the inclusion of AKD Group Holdings (Pvt) Ltd in the joint venture led by Arif Habib.

During the meeting, Farooq Sattar pressed the government to ensure strong job protection for airline workers and transparency in the sale process. Notably, the previous reserve price for PIA was set at Rs 85 billion. “The airline must be sold, but the protection of workers must be guaranteed,” he said.

The committee recommended at least five years of job protection for PIA employees and full safeguards for pensioners.

Officials said PIA currently operates 18 aircraft and will need 35-38 more for sustainable operations, with future owners required to retain experienced staff.

The Additional Secretary of the Power Department for the first time revealed to lawmakers that the government is considering the transfer of DISCOs under long-term concession contracts instead of full privatization, following the Turkish model.

These agreements would hand over management responsibilities to private entities for a potential period of up to 25 years, allowing for investment and infrastructure improvements.

In the first phase, the government plans to privatize power companies in Islamabad, Gujranwala and Faisalabad, but issuing their RFPs has been delayed, with officials saying the process will reach an advanced stage by March.

The Electricity Department told the committee that all three-phase meters nationwide will be replaced with AMI meters by December 2026 to curb electricity theft. He said 1.5 million AMI meters have been installed in the Iesco area, reducing power losses by 2%.

Addressing the 33-year delay in Pakistan Engineering Company’s (Peco’s) privatisation, Farooq Sattar asked why it has stalled. Officials said the prime minister has placed Peco on the Special Investment Facilitation Council (SIFC).

The commission ordered a formal progress report from SIFC, while the Privatization Department noted that it is responding to municipal queries rather than initiating them. The committee was also briefed on the privatization of the Roosevelt Hotel in New York. Separately, officials from the Ministry of Industries and Production confirmed that all outstanding dues of utility store workers have been cleared.