Pakistan's Bold Move to Fully Privatize PIA Attracts Major Bidders

Pakistan has announced its decision to sell its entire stake in Pakistan International Airlines (PIA), with bidders seeking full managerial control. The government's aim is to revive the airline by attracting major business groups like Lucky Cement and Air Blue. Bidding starts on December 23.

Pakistan has made the strategic decision to divest 100 percent of its stake in Pakistan International Airlines (PIA) after potential bidders expressed the need for complete managerial control without government involvement post-privatization. Local media sources reported this development on Wednesday.

The bidding, slated for December 23, will initially offer 75 percent of the shares of the financially struggling national flag-carrier. Notably, the victorious bidder will be given the opportunity to procure the remaining 25 percent of shares within a subsequent month, subject to a 12 percent premium. This premium accommodates the buyer's option to delay payment for a year, rather than upfront.

The government stands to receive 7.5 percent of the bid amount in cash, with a substantial 92.5 percent reinvested directly into PIA to aid its revival. Major business entities like Lucky Cement Consortium, Arif Habib Consortium, Fauji Foundation, and Air Blue have shown interest in bidding, signaling strong investor confidence in PIA's future potential.

(With inputs from agencies.)