Pakistan’s Privatisation Commission has extended the bidding deadline for the sale of Pakistan International Airlines (PIA) to October 31, 2024, due to low bidder interest and unresolved issues.
The delay follows a brief from privatisation officials to the government, indicating that various challenges have affected buyer interest, including the government’s decision not to grant special tax treatment for PIA.
The Pakistani government aims to sell a 60pc stake in PIA, with conditions requiring the buyer to maintain the airline’s brand, keep its routes, and invest PKR80bn (USD288m) in the first year, totalling USD500m over three years.
Six domestic bidders, including Fly Jinnah, AirBlue, and several consortia, are shortlisted, with stipulations requiring the buyer to retain PIA’s over 7,300 employees for at least two years and comply with pension regulations for former employees.
