Prime Minister Shehbaz Sharif leads PIA privatization

The government, led by Prime Minister Shehbaz Sharif, is progressing with its privatization agenda, with a focus on Pakistan International Airlines (PIA). Various companies, including Chinese firms, have submitted Statements of Qualifications (SoQs) to acquire majority shares in PIA. Some of the companies interested in this venture are Fly Jinnah, Air Blue Limited, Arif Habib Corporation Limited, SHANXI CIG Co Ltd (China), and Gerry's International (Private) Limited.

Prime Minister Shehbaz Sharif recently announced the privatization of all state-owned enterprises (SOEs), except strategic ones, as part of an agreement with the International Monetary Fund (IMF) to address Pakistan's economic challenges. PIA, facing significant financial difficulties, has been identified as a key entity for privatization.

The Securities and Exchange Commission of Pakistan (SECP) has given the green light for the legal separation of PIA's non-core assets and liabilities to PIA Holding Company Limited, effective from April 30, 2024. The Privatization Commission will soon begin the pre-qualification process for potential bidders, evaluating their capabilities before granting access to PIA's operations and finances.

Following a pre-bid conference and approval of the valuation for the sale of majority stake in PIA by the Privatization Commission Board (PCB) and the Cabinet Committee on Privatization (CCoP), the bidding phase will commence. The winning bidder will be issued a Letter of Intent by the government, leading to the final sale agreement and the transfer of majority shares in PIA.

The government's decision to privatize PIA and other state-owned enterprises is a significant step towards addressing Pakistan's economic challenges. The involvement of various companies, including those from China, reflects the global interest in Pakistan's aviation sector. As the privatization process unfolds, it is essential to monitor how this move will impact PIA's operations and the broader economy.