KP govt expresses interest in PIA privatisation bid, offers more than 10bn

The Khyber Pakhtunkhwa government has formally expressed interest in participating in the privatization bid for Pakistan International Airlines (PIA).

The Khyber Pakhtunkhwa Investment Board has written to the Federal Minister for Privatization, outlining its intention to submit a bid higher than the consortium's offer of Rs10 billion.

The federal government has set a minimum price of Rs85 billion for PIA's privatization. However, the sole bidder, a consortium, offered Rs10 billion for a 50% stake, which was deemed insufficient.

The KP Investment Board's letter states that PIA, being the national airline, holds significant assets vital to the nation.

The bid, placed by the real estate development company Blue World City, amounts to 10 billion Pakistani rupees, approximately $36 million. This offer falls significantly short of the government’s minimum asking price of 85 billion Pakistani rupees.

The Pakistani government had pre-qualified six groups in June for the bidding, but Blue World City was the only participant. With PIA heavily in debt, the government aims to sell a 51-100% stake in the airline to generate funds and implement reforms as part of a $7 billion International Monetary Fund program.

PIA lone bidder to launch own airline if deal fails

The Privatisation Commission has requested Blue World City to adjust their bid to meet the minimum requirement. However, the company’s chairman, Saad Nazir, expressed reluctance to increase the offer, stating that it does not make financial sense, according to Reuters.

 Nazir suggested that if the government does not accept their bid, they may consider starting their own airline.

“We wish the government all the best if they don’t want to accept our bid,” he said.