- Dar-led CCoP rejects Blue World City privatization offer of Rs 10 billion.
- The government is considering agreements with China and Gulf countries, including Qatar.
- These countries can play a key role in the privatization of PIA, says an official.
ISLAMABAD: After failing to attract the required bid for the privatization of Pakistan International Airlines (PIA), the incumbent government is now considering a government-to-government (G2G) sale of the national carrier, News reported, citing an official on Saturday.
The Cabinet Committee on Privatization (CCoP), chaired by Deputy Prime Minister and Foreign Minister Ishaq Dar, on Thursday rejected a Rs 10 billion bid from Blue World City, following a board recommendation of the Privatization Commission.
The development comes after the bid for a 60% stake in PIA fell well below the minimum price of Rs85.03 billion, leading the government to consider alternative strategies to divest the airline.
Following the setback, Federal Minister for Privatization Abdul Aleem Khan reiterated the government’s determination to privatize the airline, saying the process would be carried out in a “better manner”.
Meanwhile, sources say that the governments of Punjab and Khyber Pakhtunkhwa have also expressed interest in acquiring PIA – although the former has denied the reports.
On November 1, the KP government officially declared its readiness to submit a tender for PIA.
In a follow-up letter to Aleem, KP Council of Investment and Commerce (KP-BOIT) Vice Chairman Hassan Masood Kunwar highlighted the strategic importance of the acquisition and requested an update on the status of the proposal.
Additionally, the official told the publication that the administration led by Prime Minister Shehbaz Sharif is evaluating direct G2G deals with countries like Qatar, other Gulf countries and China, as these countries have historically provided a financial support to Pakistan and could play a central role in the airline’s development. privatization.
PIA has not made a profit for almost two decades and has liabilities of 200 billion rupees. The government plans to free the airline of debt to attract buyers, having already transferred about three-quarters of its $3 billion debt to government accounts in the previous privatization attempt, the official said.
“This marks another setback in PIA’s privatization efforts,” an official remarked, adding, “We need to revise the terms and explore other avenues to make the airline more attractive to investors.”
Separately, the CCoP also formed a committee, co-chaired by the Minister of State for Finance, to evaluate options for privatization of the PIA-owned Roosevelt Hotel in New York. Additionally, the CCoP ordered authorities to finalize the sale of Services International Hotel before its next meeting.
The meeting included key ministers of privatization, trade, industry, finance and energy, as well as federal secretaries from various divisions.