PIA privatisation: 'Bidders demand dismissal of workforce'

Six pre-bidding parties have expressed their willingness to buy Pakistan International Airlines but not interested in retaining the staff, according to multiple media reports.

During a session of the Senate Standing Committee on Privatization, it was revealed that six pre-bidding parties have expressed hesitancy regarding the retention of existing workers and raised concerns over tax issues.

The financial bidding, initially scheduled for October 1, has been postponed to October 31 to address these concerns.

Privatization Commission Secretary Usman Bajwa informed the committee that the pre-bidding parties sought clarifications on employee services, pensions, and requested warranties for 18 of PIA’s aircraft, along with protection from past litigation.

Bajwa assured the committee that efforts were being made to ensure no further delays in the bidding process.

Committee Chairman Tallal Badar highlighted the importance of completing PIA's privatization promptly, warning that any delays could negatively affect the privatization process.

Bajwa noted that PIA’s liabilities, amounting to Rs200 billion, along with concerns regarding employees and pensions, were key issues raised by the investors.

However, the commission has made progress in resolving these concerns, with only a few remaining. Senator Mohsin Aziz also stressed the need to address PIA’s assets and employee matters to ensure the privatization program's success.

The committee underscored the importance of transparency in the privatization process, with the bidding companies collectively requesting an extension of the deadline due to ongoing due diligence.