PIA bidding nears as privatisation process reaches final stage

Islamabad: The bidding for the privatisation of Pakistan International Airline (PIA) is set for October 1, 2024.

This announcement came during a meeting of the National Assembly's Standing Committee on Privatization, chaired by Farooq Sattar. Final approval of the bids will be sought from the federal cabinet.

The Secretary of the Privatisation Commission revealed that the privatisation process began in November 2023 and is now nearing completion, with investors ready to bid.

The successful bidder will be required to invest between 65 to 70 billion rupees and expand PIA’s fleet from 18 to 45 aircraft within three years, he explained.

He also clarified that while PIA's current staff will be kept for two to three years, changes to the airline's routes will require government approval.

These conditions will be part of the agreement with the winning bidder, and talks are underway to lift the European ban on PIA, with plans to resume flights to Europe.

Committee member Sahar Kamran urged the presentation of the draft agreement to the committee. The Secretary confirmed that the draft has been shared with investors and is awaiting cabinet approval.

On the issue of pensions for retired PIA staff, the Secretary said the pension liability stands at 35 billion rupees, which the government will take on. The government has already injected 800 billion rupees into PIA to clear its debts, leaving the airline debt-free.

PIA's Chief Executive Officer assured the committee that the airline’s safety standards are at the highest international levels. He expressed hope for resuming flights to the UK soon, adding that new investors will need to hire more cabin crew and IT staff.

Chairman Sattar commended the swift pace of PIA's privatisation compared to other institutions. He emphasized protecting employee rights, ensuring no cuts to salaries and allowances during the transition.