ISLAMABAD – The Privatization Commission has extended the bidding date for Pakistan International Airlines (PIA) by one month, setting it for October 31.
Reports said the new date for signing the draft agreement has been set for October 25 while the date for depositing the advance bidding fee has been set for Oct 28.
It is feared that the extension in the bidding date may hinder the privatisation of the loss-making national carrier.
Previously, the advance fee was to be submitted by September 27, and all preparations for bidding were completed by October 1.
Reports said six private companies’ consortiums are currently participating in the bidding process.
Earlier this week, Chairman of the Privatization Standing Committee, Farooq Sattar, announced that the PIA auction would be held on October 1.
Sattar had said that the PIA auction will be broadcast live, and committee members will also observe 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.
