Peshawar [Pakistan], November 2 : In a move that could reshape Pakistan's aviation landscape, the Khyber Pakhtunkhwa government has signalled its intent to join the bidding process for the privatisation of Pakistan International Airlines (PIA), aiming to submit a strong offer, ARY News reported.
Acting on directives from Chief Minister Ali Amin Gandapur, the Khyber Pakhtunkhwa Investment Board addressed Federal Minister for Privatisation Abdul Aleem Khan, expressing the province's intention to place a bid.
In the letter, the Board emphasised PIA's national significance, describing it as a "national asset of immense importance." The letter further stated, "The Khyber Pakhtunkhwa government is willing to offer a better deal than the Blue World City."
On Thursday, the Privatisation Ministry revealed that only one bid had been received during the final phase of the PIA sale, totalling PKR 10 billion for a 60 per cent stake. The single bid came from Blue World City, a real estate firm, which fell below the government's minimum price requirement of PKR 85 billion.
While six companies had been pre-qualified by the government in June, only Blue World City submitted an official bid, reported ARY News.
To align with the minimum pricing set by the government, the Privatisation Commission urged the bidder to increase their offer. However, Blue World City's chairman, Saad Nazir, held firm on the original amount, stating, "We wish the government all the best if they don't want to accept our bid."
The sale of PIA aligns with Pakistan's broader goal to generate funds through privatisation, an effort bolstered by a USD 7 billion program from the International Monetary Fund (IMF). As part of the initiative, Pakistan is offering between 51 per cent and 100 per cent ownership of the financially troubled national airline.
During a recent Senate Privatisation Committee meeting, chaired by Senator Talal Chaudhry, it was disclosed that several companies interested in acquiring PIA are pushing for additional terms.
Among these is a request for the government to lay off all current employees and to cover tax liabilities while transferring 76 per cent of PIA shares to the new owner, ARY News reported.
The prospective sale of PIA and the bidding dynamics underscore the challenges of balancing fiscal recovery efforts with workforce and stakeholder interests as Pakistan navigates the complexities of privatisation.
Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor