Govt revises PIA privatisation strategy for better outcomes

Federal minister Azam Nazeer Tarar says those in authority are unable to project outcome of bidding process
PIA passenger plane sitting on tarmac at the Islamabad International Airport, Islamabad, Pakistan October 27, 2024. — Reuters

PIA passenger plane sitting on tarmac at the Islamabad International Airport, Islamabad, Pakistan October 27, 2024. — Reuters

While Pakistan International Airlines has announced plans to acquire and add eight new planes to its aircraft fleet, the government has announced a revised strategy to privatise PIA for better outcomes. 

The announcement was made by the Federal Minister for Privatisation, Board of Investment, and Communications Abdul Aleem Khan, with the newly devised plan differing from the previous, flawed strategy. 

The privatisation minister noted that the recently introduced reforms made PIA privatisation “easier and more attractive,” making the process more efficient to have better outcomes. 

To attract more investors and enhance bids, he last week announced that PIA privatisation would proceed without carrying its liabilities. 

“The privatisation process needs to be carefully planned. This time, we anticipate improved bids and a more favourable outcome […]lessons learnt from past mistakes have been corrected to make the next plan more successful,” said Federal Minister for Law and Justice Azam Nazeer Tarar last week.

The incumbent government was subjected to strong criticism, for not being able to privatise or revitalise the PIA, from Naveed Qamar, Abdul Qadir Patel and Shazia Marri of Pakistan People’s Party (PPP) – the biggest ally of the ruling PML-N.

Although better bids for the PIA sell-off were widely acclaimed by lawmakers, Tarar was of the view that those in authority are unable to project the outcome of the bidding process.