The government has extended the deadline to subject expressions of interest (EOI) in the purchase of Pakistan International Airlines (PIA) on June 19, the Ministry of Privatization announced on Tuesday.
The extension follows the need to welcome the holidays of Eidul Adha and the recent political and military tensions, including the Pakistani-Indian conflict, said an official.
This decision comes as Pakistan continues its efforts to privatize the national debt carrier to collect funds and rationalize public enterprises, within the framework of the country’s agreement with the International Monetary Fund (IMF) under a program of $ 7 billion.
The initial deadline for the submission of the EOI was June 3. The ministry has confirmed that all other terms and conditions would remain unchanged.
Learn more: Govt tightens the PIA tender conditions
In order to fight against its financial crisis, Pakistan seeks to sell a participation of 51 to 100% in PIA. However, attempts to privatize the carrier were faced with challenges.
During the auction final last October, only one offer was submitted – an offer of $ 36 million for a participation of 60% – well below the minimum government price of $ 303 million.
The tenderers have cited concerns about the continuity of policies, the inconsistent communication of the government and the unfavorable terms in the aviation sector as important obstacles.
The privatization of PIA has been under pressure for several years, the airline operations being still affected by an EU ban in 2020 compared to the security problems linked to the irregularities of pilot licenses.
Despite these challenges, the government remains determined to privatize the PIA, as well as other public loss of loss entities, in order to reduce the financial burden of the national chessboard.