Govt to invite fresh bids for PIA privatisation

The Pakistani government is set to invite fresh expressions of interest (EoIs) later this month for the sale of Pakistan International Airlines (PIA), a senior official confirmed on Thursday.

The move comes shortly after the national carrier reported its first annual profit in over 20 years.

The government aims to sell a 51% to 100% stake in PIA, part of broader efforts to privatise loss-making state-owned enterprises (SOEs) and meet the reform targets under a $7 billion programme with the International Monetary Fund (IMF).

An earlier attempt to privatise PIA in 2024 fell through after only one bid was submitted—below the expected price tag of over $300 million.

According to the Privatisation Ministry, many of the concerns raised by potential buyers, such as tax issues and a heavily burdened balance sheet, have now been addressed.

“In our last attempt to privatise PIA, pre-qualified bidders had issues with taxation and the balance sheet. Those are taken care of now,” said Muhammad Ali, the government's privatisation adviser. “We plan to publish the new Expression of Interest by the last week of April 2025.”

The government intends to finalise the privatisation process by the end of the year and may revise the pre-qualification criteria and reference price based on the airline’s improved financials.

Privatisation of power distribution companies has also been prioritised, with some deals initially slated for later phases now being advanced.

In addition, the government has hired Jones Lang LaSalle (JLL) to explore sale options for PIA-owned Roosevelt Hotel in New York.

Options include a direct sale or entering a joint venture with a leading developer—potentially yielding up to five times more revenue, according to Ali.

Prime Minister Shehbaz Sharif had earlier committed to the complete divestment of all SOEs to streamline public spending and improve efficiency.