Business Desk 
Nov 01, 2024
Blue World City has declined to increase its Rs10 billion bid for Pakistan International Airlines (PIA) following the government’s request to meet a Rs85 billion reserve price.
The initial bid, a significant move by the real estate firm to diversify into the aviation sector, was aimed at rescuing the national carrier from its ongoing financial turmoil.
However, Blue World City chose not to amend its offer, stating that the proposed figure represented its final valuation for the ailing airline.
The government now faces a pivotal decision: either accept Blue World City’s offer as the highest bid or terminate the privatisation process entirely. The outcome holds substantial implications for both PIA’s future and the government’s privatisation strategy, which has focused on transitioning struggling state-owned enterprises to private management.
By holding firm on its offer, Blue World City underscored the challenges PIA faces as an acquisition target, with substantial liabilities and operational restructuring demands.
Industry analysts noted that Blue World City’s decision reflects the financial risks associated with PIA’s overhaul, as prospective buyers must weigh significant investment needs against the airline’s current debt burden.
