Pakistan is assessing options to sell a 51% to 100% stake in its debt-ridden national carrier, Pakistan International Airlines (PIA), as part of efforts to revive struggling state-owned enterprises. This comes after a failed attempt last year when a buyer offered $36 million for a 60% stake, significantly below the asking price of $303 million.
The Privatization Commission, chaired by Muhammad Ali, the adviser to the prime minister on privatization, has proposed a new transaction structure to attract potential investors. The plan includes transferring management control along with the equity stake. Officials have stated that final terms will be determined during the bidding process.
PIA’s financial struggles have been daunting, with cumulative losses nearing $3 billion. Challenges such as policy instability, unattractive terms, and operational inefficiencies have deterred serious buyers in the past. However, PIA has shown signs of recovery, resuming operations in Europe earlier this year after resolving a safety ban placed in 2020. Expansion into new European and UK routes is expected to add value ahead of privatization.
The privatization initiative is part of Pakistan’s wider strategy to secure its economy, as outlined in a $7 billion International Monetary Fund (IMF) program.
