Significant Progress in PIA’s Privatization: Pre-Qualification Criteria Approved

There has been a major development in the privatization of Pakistan International Airlines (PIA), as the pre-qualification criteria for its sale have been approved.

The Privatization Commission Board has approved the pre-qualification criteria for selecting potential bidders for the privatization of Pakistan International Airlines Corporation Limited (PIACL).

According to the report, the 233rd meeting of the Privatization Commission Board was held today at the Privatization Commission under the chairmanship of the Prime Minister’s Advisor on Privatization and Chairman of the Privatization Commission, Muhammad Ali.

The board approved the pre-qualification criteria for selecting potential bidders for the privatization of 51 to 100 percent of shares of Pakistan International Airlines Corporation Limited (PIACL).

A fresh Expression of Interest (EOI) advertisement for the division of PIACL is planned to be published next week. The board meeting will continue tomorrow to review the remaining items on the agenda.

It is worth noting that for years, the national airline has been among the state-owned entities incurring losses. According to the Ministry of Finance’s report for the fiscal year 2023-24, PIA suffered a loss of Rs. 73.5 billion during the year.

Due to the continued financial losses, the government has been pursuing the privatization of PIA. The first attempt at privatization failed in October last year when the sole bidder offered Rs. 10 billion—far below the Privatization Commission’s expected minimum of Rs. 85 billion.

Just a week ago, Defense Minister Khawaja Asif stated on social media platform X that the PIA board has approved the financial accounts for fiscal year 2024. After 21 years, the airline reported an operating profit of Rs. 9.3 billion and a net profit of Rs. 26.2 billion (after tax adjustments).