Struggling PIA Faces Single Bid Amid Investor Concerns

Pakistan International Airlines' privatisation process attracted only one bid of $36 million, much lower than the expected $306 million. Blue World City was the sole bidder for a 60% stake, expressing concerns about government agreements. Other groups cited inconsistencies and legacy issues as deterrents for participation.

The privatisation process of Pakistan International Airlines has only attracted a single bid, raising concerns over investor confidence and government policies. Real-estate developer Blue World City placed the only bid at $36 million for a 60% stake, far below the government's minimum of $306 million.

In a bid to offload its stake in the struggling airline, the government faced challenges due to its recent track record in maintaining long-term agreements and policy consistency. Some potential investors abstained, fearing policy changes with new administration setups.

Analysts have highlighted the changes in power sector contracts as a warning sign for new investors in Pakistan, where chronic issues in infrastructure sectors persist. Despite these, Blue World City has stood by its decision as other investors pointed out unattractive terms and PIA's legacy issues.

(With inputs from agencies.)