Pakistan Airlines Sale: A Bold Step Towards Economic Reform

Pakistan's Privatisation Ministry reported receiving interest from five parties to acquire Pakistan International Airlines, which has faced significant financial losses. Following a major restructuring, PIA posted an operating profit for the first time in 21 years. This sale is a crucial test of Pakistan’s ability to privatize state enterprises.

Pakistan's efforts to sell its national airline, Pakistan International Airlines (PIA), have attracted interest from five key parties, including business consortia and a military-affiliated firm, according to the Privatisation Ministry.

These expressions of interest were submitted before the June 19 deadline, marking a pivotal moment in Pakistan's plan to privatize state-owned enterprises as part of a $7 billion International Monetary Fund bailout agreement. PIA, once a leading global carrier, had been incurring over $2.5 billion in losses over a decade, but recent restructuring resulted in its first operating profit in 21 years.

The sale is expected to revive the country's stalled privatization initiative and presents an opportunity for complete divestment, including changes to sales tax on leased aircraft and legal protections. Successful bidders will gain access to airline data for due diligence, with a final transaction anticipated by the fourth quarter of 2025.

(With inputs from agencies.)