Business Desk 
Apr 17, 2025
An undated image of a PIA aircraft. — Depositphotos
The government is again set to sell Pakistan International Airlines (PIA) as part of its drive to rectify loss-making state-owned enterprises. It will issue invitations for bids next week to sell 51% to 100% stakes in the national carrier, the Ministry of Privatisation said.
Pakistan has been operating under a $7 billion International Monetary Fund (IMF) loan programme. Selling or restructuring loss-making companies is one of the major objectives of the programme. PIA is among them.
PIA, which was a dominant regional airline, has been in dire straits for years because of bad management, losses, and accumulating debt. But last month, it posted its first annual profit in more than 20 years — something that should give investors some cheer. Now that the government has moved ahead once again, the airline is formally back on the block.
The government had attempted to privatise PIA in the previous year, but they received only a single bid. That bid was significantly lower than the anticipated value of more than $300 million. This time around, the privatisation commission states that they have addressed the issues that plagued the previous bid.
Government adviser on privatisation Muhammad Ali said that all issues flagged by bidders in 2023 have since been addressed. One key action was to move most of PIA's overhang debt off the airline books onto the government books. The action is designed to make the airline more desirable to buyers.
The privatisation board has approved the criteria for choosing interested parties. The next week will see the issuing of expressions of interest (EOIs) by potential buyers.
