ISLAMABAD – Chairman of the Privatization Standing Committee announced that the PIA auction would be held on October 1.
The National Assembly’s Privatization Standing Committee meeting, chaired by Farooq Sattar, focused on the privatization of PIA.
Farooq Sattar revealed that the PIA auction will be held on October 1, which will be broadcast live, and committee members will also observe the bidding. Six parties will participate in the auction, and the reserve price will be disclosed after the bidding.
“It is not the government’s job to run businesses, and protecting employees’ rights during the privatization process is essential. There should be no cuts to employees’ salaries and allowances,” he added.
The Secretary of the Privatization Commission informed that the entire privatization process of PIA, initiated in November 2023, has been completed.
Investors are in the final stages of preparation for the auction, and the final approval for the bidding will be given by the federal cabinet. The buyer of PIA will need to invest Rs 70 billion in the first year to repair planes and restore operations.
The secretary also mentioned that PIA’s routes will be maintained. Currently, there are 18 aircraft, which need to be increased to 45 within three years. New planes will be purchased, reducing the average age of the fleet from 17 years to 10 years. PIA’s staff will be retained for two years, and government approval will be required to shut down any route. The ban on European routes will also be lifted soon.
Furthermore, the Secretary added that the pension for PIA’s retired employees amounts to Rs 35 billion, which will be paid by the government. The government has taken responsibility for PIA’s Rs 800 billion debt, leaving the airline debt-free.
