The commission tasked with privatizing Pakistan International Airlines (PIA) has conducted numerous roadshows without achieving significant success. Despite these efforts, foreign companies’ interest in acquiring PIA remains notably low.
The current government is determined to expedite PIA’s privatization, but this initiative has attracted minimal attention from international firms. To date, only two entities from Gulf countries have shown preliminary interest by paying a $5000 fee to obtain the privatization tender documents.
Despite the looming deadline set for May 3rd, the subdued response may necessitate extending the tender submission period by another month. Although the Gulf-based companies have acquired the tender documents, they have not yet submitted their formal applications.
Sources indicate that the financial advisers and officials overseeing PIA’s privatization lack the requisite experience in attracting foreign investments, which might be contributing to the lukewarm interest. This deficiency underscores a broader issue with the privatization strategy, particularly in effectively engaging and securing commitments from potential investors.
This lacklustre investor response suggests that the privatization’s promotional efforts have not effectively resonated with the international investment community. Despite various roadshows designed to showcase PIA’s privatization opportunities, the desired investor engagement was not met by the initial deadline.
In a related development, Bilawal Bhutto Zardari, Chairman of the Pakistan People’s Party, voiced his opposition to privatising PIA and other national assets, such as the Steel Mills, at a Labor Day event. He advocated for managing these entities through public-private partnerships under federal oversight. Moreover, Bilawal urged the government to raise wages in response to escalating inflation and reiterated his party’s stance against policies and legislations that undermine worker rights.