Pakistan’s privatization commission is addressing concerns raised by potential bidders for the country’s national airline regarding the European Union Aviation Safety Agency (EASA) ban, an official stated on Wednesday.
Privatizing state-owned enterprises, including Pakistan International Airlines (PIA), has long been recommended by the International Monetary Fund (IMF) as Pakistan seeks a bailout agreement this month.
In June, six consortiums were pre-qualified for bidding, with the privatization of PIA expected to conclude by next month, according to Usman Bajwa, secretary of the commission.
Bajwa mentioned in a briefing that the commission is actively addressing concerns raised by pre-qualified bidders, who are interested in acquiring stakes ranging from 51% to 100%.
Previous governments avoided privatizing the national carrier due to potential public opposition, but unlocking IMF funding is crucial for Pakistan.
Following a 2020 PIA plane crash in Karachi and subsequent issues over pilot licenses, EASA banned PIA from operating its most profitable routes in Europe and Britain. This ban is estimated to cost the airline approximately Rs40 billion ($143.73 million) in annual revenue, as reported to parliament by the government.
