PIA privatization stalled, but consultants paid $4.3mln in fees

Federal Minister for Privatisation, Aleem Khan has revealed that while the privatization of Pakistan International Airlines (PIA) has yet to materialize, consultants have been paid millions of dollars.

This he said during the National Assembly’s Question Hour on Friday.

Federal Minister for Privatization stated that consultancy services for PIA’s privatization cost $6.8 million, out of which $4.3 million has already been paid to financial advisors.

The privatization attempt was held on October 31, but the bids received were lower than expected.

On November 12, a recommendation was made to reject the bid, and on December 2, the federal cabinet endorsed this decision.

The government has now opted for a competitive bidding process for a second attempt at privatization.

Read more: PIA approves salary increase for employees

Minister Abdul Aleem Khan stated that talks with investors are ongoing and additional engagements with potential buyers will be pursued.

The government remains committed to finding a suitable investor for PIA while ensuring transparency in the privatization process.

Earlier,  the Board of Directors of Pakistan International Airlines (PIA) approved a cadre-wise salary increase for its employees.

According to a statement from a PIA spokesperson, the salary increase aims to address the growing financial pressures faced by staff, who have not seen a raise in four years.

The spokesperson also highlighted that the soaring inflation rates over the past few years have significantly impacted employees' financial well-being.