ISLAMABAD – October 31 marks crucial moment in long-anticipated privatization of Pakistan International Airlines (PIA) as the final round of bidding is set to be held today.
The bidding process will take place in a private hotel, where both the submission and opening of bids will happen simultaneously.
Reports claimed that the entire privatization procedure will adhere to strict regulatory guidelines and legal requirements. As the government moves forward with this initiative, new conditions have emerged from prospective buyers, particularly concerning the airline’s employees.
Among the six potential bidders, only Blue World City, the real estate tycoon behind Suno TV Nwtwork, submitted the necessary advance payment, highlighting its commitment to the bidding process.
With buyers evaluating their options, today’s bids will significantly influence the future of Pakistan’s national air carrier.
The government decided to privatise the air carrier with 10000 employees at request of IMF to expedite the process. Out of six pre-qualified bidders, only one remains after five withdrew, having deposited the required earnest money.
Bidders sought 60pc stake but are now pushing for full ownership due to concerns about financial risks, aging fleets, and operational challenges.
PIA’s Rs200 billion debt, restrictions on international routes, and the open skies policy alarmed bidders while there are concerns about workforce retention, with government requirements to maintain employee and pension plans for three years creating further complications.
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