——– Says if today, Punjab, K-P, Sindh, and Balochistan each took a stake, PIA could actually become profitable
——– KP has shown interest in buying stakes in PIA
——– Punjab mulls to buy and rebrand PIA
By Ali Imran
ISLAMABAD: Federal Minister for Privatisation, Abdul Aleem Khan, has said the government has no objection if any provincial administration wishes to acquire Pakistan International Airlines (PIA).
He further added that provincial ownership could potentially lead to profitability for the struggling national carrier. Speaking at a press conference in Lahore, Khan explained that privatisation plans for PIA had been established prior to his appointment, emphasising his mandate as focused on facilitating the airline’s sale, not on reforming its structure.
“The framework for PIA’s privatisation was set before I assumed office, with a deficit of Rs830 billion ($2.9 billion). Changing this framework was beyond my authority,” he stated.
In a sharp critique, Khan noted the extensive mismanagement PIA has faced across various administrations.
“Those who contributed to PIA’s ruin should reflect on their actions,” he remarked, citing a collective failure across different political tenures.
He confirmed that the federal government would not object if any provincial government stepped forward with an acquisition proposal.
“Whether it’s the governments of KP, Punjab, or Sindh, we welcome any provincial interest in buying PIA. If today, Punjab, KP, Sindh, and Balochistan each took a stake, PIA could actually become profitable,” he asserted.
Khan’s comments follow recent suggestions from former Prime Minister Nawaz Sharif that the Punjab government should consider purchasing PIA.
Khyber-Pakhtunkhwa has also formally expressed interest in the acquisition already, proposing to outbid private sector offers to retain the airline under government control.
The expression of interest from Punjab and K-P followed the final bidding process for the privatisation of Pakistan International Airlines (PIA), which garnered only one bid of Rs10 billion for a 60% stake, according to the Privatisation Ministry on Thursday.
In June, the government had pre-qualified six groups, but only Blue World City, a real-estate development firm, submitted a bid that fell short of the government’s minimum price of Rs85 billion.
Cash-strapped Pakistan aims to sell a 51-100% stake in PIA to generate funds and reform state-owned enterprises as part of a $7 billion International Monetary Fund program.
The Privatisation Commission requested that the bidder meet the minimum price. However, Blue World City Chairman Saad Nazir defended his bid, stating, “We wish the government all the best if they don’t want to accept our bid,” during the ceremony.
