Privatisation Path: Pakistani Companies Vie for PIA Stake

Four Pakistani firms, including Fauji Fertilizer and Habib Rafique, are set to bid for Pakistan International Airlines as part of a privatization process. Despite past challenges, including financial backlogs and administrative issues, the commission hopes to boost investment and expand PIA's fleet from 18 to 38 aircraft over four years.

Four prominent Pakistani companies, namely Fauji Fertilizer, Habib Rafique, Younus Brothers, and Airblue, stand poised to bid in the upcoming privatization of Pakistan International Airlines (PIA). This process, initially set for early December, has been postponed to later in the month.

The successful bidder will need to infuse an initial investment of PKR 30-40 billion. It's noteworthy that the airline's branding remains unchanged post-privatization, with its domestic and international properties already placed under PIA Holdings Company. The privatization exclusively covers offices in Islamabad, Karachi, Peshawar, and Rawalpindi.

The government's privatization commission is keen to attract further investments to expand the fleet from the current 18 aircraft to 38 within four years. Despite previous financial hurdles, the airline recently announced a pre-tax profit of PKR 11.5 billion in the first half of this financial year. Additionally, PIA has resumed flights to major expatriate locales like the UK and Canada.

(With inputs from agencies.)