Privatization of PIA back on track as govt opens expressions of interest

(Reuters): The government will seek expressions of interest next week for the sale of Pakistan International Airlines, the privatization ministry said on Thursday, days after it reported its first annual profit in over two decades.

Pakistan has been seeking to sell a 51-100% stake in the debt-ridden carrier, to raise funds and reform cash-draining, state-owned enterprises as envisaged under a $7 billion International Monetary Fund programme.

Its failed attempt to privatise Pakistan International Airlines last year received a single offer, well below the asking price of more than $300 million.

The privatisation commission board has approved seeking new bids, the ministry said in a statement.

“The board approved the pre-qualification criteria for selection of prospective bidders,” it said. It added new expressions of interest in buying between 51 and 100% of the airline would be sought next week.

Pakistan has shifted almost all of the national carrier’s legacy debt to government books after issues raised by bidders led to the failure of the last privatisation attempt.

Muhammad Ali, government adviser on privatisation, said last week all the issues raised at the time of last year’s failed attempt had been dealt with.