PTBP Web Desk
The federal government has decided to extend the deadline for submitting Expressions of Interest (EoIs) for the proposed privatisation of Pakistan International Airlines Corporation Limited (PIACL), offering potential investors more time to participate in the process. Originally set to end on June 3, 2025, the revised deadline now pushes the submission date to 4:00 PM on Thursday, June 19, 2025. This extension has been officially communicated via a public advertisement, which clarified that while the timeline has been revised, all other terms and conditions related to the process will remain unchanged.
The extension underscores the government’s intention to attract a broader pool of qualified bidders to take part in the strategic divestment of Pakistan’s national flag carrier. This move comes amid renewed efforts to reform and offload loss-making state-owned enterprises (SOEs), a key requirement under Pakistan’s ongoing $7 billion loan agreement with the International Monetary Fund (IMF).
PIACL is a public limited company and serves as Pakistan’s national airline. The Government of Pakistan, through PIA Holding Company Limited, owns approximately 96% of the airline’s issued capital. Despite years of operational difficulties and mounting debts, the airline continues to offer a full range of aviation services and flies to 30 destinations, transporting nearly 4 million passengers in the last financial year. It currently operates 268 flights per week, indicating its continued significance in Pakistan’s aviation industry.
Under the ongoing privatisation plan, the government is offering a 51% to 100% stake in PIA. The primary goal is to divest a controlling interest that would enable new investors to reform and revitalize the debt-ridden airline. The broader strategy aligns with economic restructuring goals and seeks to alleviate the financial burden of underperforming SOEs on the national exchequer.
The current privatisation effort follows a failed attempt last year when the government sought to privatise PIA but only received a single offer, which did not meet the valuation benchmark. The offer came from a consortium led by Blue World City, which proposed acquiring a 60% stake in PIA for just Rs10 billion.
However, the Privatisation Commission had set a minimum valuation of Rs85.03 billion. The significant gap between the offer and the government’s expectations led to the termination of the bidding process. The Blue World City consortium refused to revise its offer upward, resulting in an impasse that stalled the privatisation initiative.
The drive to privatise PIA is part of a broader structural reform agenda championed by the IMF. The global lender has long pushed Pakistan to reduce its fiscal burden by selling off unprofitable public entities. PIA, which has been running at a loss for years and requires continuous government bailouts, has been at the center of this reform narrative.
By extending the EoI deadline, the government is likely aiming to create a more competitive bidding environment and to signal its commitment to transparency and inclusivity in the privatisation process. This could help build investor confidence and potentially attract foreign interest, which may be crucial for both financial and operational turnaround.
Once the extended deadline closes on June 19, the received Expressions of Interest and Statements of Qualification will be evaluated. Qualified bidders will be shortlisted for the next stages, including due diligence, access to the data room, and ultimately, submission of financial bids.
Stakeholders involved in the process include the Privatisation Commission, the Ministry of Finance, and the PIA Holding Company. Coordination with international financial and legal advisors is also underway to ensure the process aligns with global best practices.
