Invitation for Bids: PIA Privatization Seeking Interest from Potential Parties
By
April 3, 2024
The Pakistan government has made a big decision to sell most of Pakistan International Airlines (PIA) to private investors. They want to sell 51% of the shares of PIA.
This idea is like what other big airlines, such as Lufthansa and Alitalia, have done before. Now, the government wants to find people or companies who want to buy these shares and run PIA.
It’s a bold decision because past governments were afraid people wouldn’t like it. But the government thinks it’s necessary to make Pakistan’s money situation better. They also want to get more help from the International Monetary Fund (IMF).
People who want to buy PIA shares have until May 3 to say so. Whoever offers the best deal will get to manage PIA, but the government will still own 49% of it.
The government wants both local and foreign investors to take part. They’re keeping an eye on where the investors are from.
To help PIA with its money problems, the government and banks have agreed to change how PIA’s big loan gets paid back. The plan is to make PIA profitable again and use the profits to pay off the loan. They’ll also issue special bonds to help with this.
PIA is an important part of Pakistan’s airline industry, but it faces tough competition from airlines in the Middle East. The government wants to make PIA more competitive by changing how it works and reducing its debt. This should help PIA grow and make more money in the future.
