ISLAMABAD: The Senate Standing Committee on Privatization was informed that the privatization of Pakistan International Airlines (PIA) is scheduled for December 23, with all outstanding matters expected to be finalized by December 19.
Secretary Privatization Commission Usman Bajwa told the committee that the prospective buyer will receive significant tax relief, including exemption from paying sales tax on new aircraft purchases. He noted that previous financial and tax-related hurdles, which had stalled the last privatization attempt, have now been resolved.
Unlike the previous attempt, the investor will not be responsible for Rs33 billion in outstanding liabilities, Rs26.6 billion in dues to the FBR, or Rs7 billion owed to Pakistan Aviation. The Privatization Commission further confirmed that 51 percent to 100 percent of PIA’s shares will be offered for sale, and issues related to taxes and incentives have been fully settled this time, with the IMF granting timely GST relief.
Officials highlighted that the reopening of UK and European routes has improved PIA’s commercial prospects. Final commercial terms with investors are expected to be concluded shortly. Investors will be required to submit Rs2 billion as bid security, and the winning bidder must arrange Rs80 billion in financing for PIA immediately following privatization.
The government expressed confidence that these improved terms, combined with route restorations, will make the privatization process more attractive for investors.
Final Phase of Privatization Underway
The privatization process has entered its final stage, with senior PIA management holding key meetings with officials from all four bidding consortiums. Meetings were conducted in Karachi, Lahore, and Islamabad, while PIA and the Privatization Commission continued providing detailed records to assist in bid preparation.
Financial and HR experts from the consortiums have reviewed comprehensive operational and administrative records, including detailed information on PIA’s 7,500-plus employees—pilots, engineers, cabin crew, ground staff, and overseas postings. Revenue data from domestic and international routes, as well as records of retired employees, were also shared, confirming that pension liabilities will not transfer to the new management.
All four consortiums are expected to submit their bids on December 23, and PIA will be handed over to the consortium offering the highest bid. Currently, PIA operates 34 aircraft across more than 90 domestic and international routes.
