PIA privatisation enters final phase as four bidders pre-qualify

The privatisation of Pakistan International Airlines (PIA) has entered an advanced phase, with four bidders officially prequalified to proceed, the Privatisation Commission disclosed during a meeting of the National Assembly Standing Committee on Privatisation, chaired by MNA Farooq Sattar.

Out of five entities that submitted Statements of Qualification (SOQs), four have now been granted access to PIA’s virtual data room beginning tomorrow.

These parties will review key commercial, legal, and financial documents as part of the due diligence process.

PIA Chief Executive Officer briefed the committee that comprehensive presentations regarding the airline’s financial standing and asset portfolio would be shared with the bidders before they are invited to submit final offers.

He confirmed that the government aims to conclude the privatisation process by the final quarter of the current year.

The CEO noted a significant turnaround in PIA’s financial performance, stating that the airline has returned to profitability after 21 years. He further highlighted that the average fleet age stands at 18.5 years and is expected to double in size over the next five years.

Read more: PIA resumes flights to Gulf countries after Iran-Israel ceasefire

Currently, PIA operates 19 aircraft, and a tender has been floated to upgrade passenger seating.

The CEO also confirmed that post-sale employee retention is under consideration, with discussions underway to retain staff for at least 18 months. PIA currently employs 6,700 individuals, of which 20% are classified as surplus.

The Privatisation Commission aims to complete due diligence within 60 to 90 days, cautioning that any delays beyond this window may hamper the overall timeline.

During the session, Chairman Farooq Sattar mentioned that Punjab Chief Minister Maryam Nawaz had reportedly shown interest in acquiring PIA. He remarked that she should have been given an equal opportunity to participate in the bidding process.