Photonews Logo Photonews logo
  • Home
  • Pakistan
    • Punjab
    • Sindh
    • Khyber Pakhtunkhwa
    • Azad Jammu Kashmir
    • Balochistan
    • Gilgit – Baltistan
  • World
  • Business
  • Entertainment
  • Videos
    IShowSpeed Daniel La Belle race
    Videos

    IShowSpeed Beats Daniel La Belle in 40-Meter Race, Hits 41M Subscribers

    June 24, 2025 2 Min Read
    Cardi B new single Outside
    Videos

    Cardi B’s ‘Outside’ Single Sparks Buzz Over Offset and Stefon Diggs

    June 20, 2025 2 Min Read
    Squid Game Season 3
    Videos

    Squid Game Season 3: Final Trailer Unveils Epic Plot

    June 14, 2025 2 Min Read
  • Sports
  • Technology
  • Offbeat
  • Blog
  • Contact
Reading: Failed Privatization Bid for Pakistan International Airlines
PhotoNews Pakistan PhotoNews Pakistan
Font ResizerAa
Search
  • Home
  • Pakistan
    • Punjab
    • Sindh
    • Khyber Pakhtunkhwa
    • Balochistan
    • Azad Jammu Kashmir
    • Gilgit – Baltistan
  • World
  • Business
  • Entertainment
  • Videos
  • Sports
  • Technology
  • Offbeat
  • Blog
  • Contact
Have an existing account? Sign In
Follow US
© 2022 Photonews. All Rights Reserved.
PIA Direct US Flights
PhotoNews Pakistan > Business > Failed Privatization Bid for Pakistan International Airlines
Business

Failed Privatization Bid for Pakistan International Airlines

Web Desk
By Web Desk Published November 1, 2024 3 Min Read
Share
Pakistan International Airlines . Photo Credits: Nikkei Asia
SHARE

The government’s initial attempt to privatize Pakistan International Airlines failed. The only bid presented was Rs10 billion, significantly lower than the expected Rs85 billion.

Blue World City, a real estate firm, declined to meet the government’s set minimum of Rs85.03 billion for 60% ownership.

Blue World City refused to match the minimum expectation of the Privatisation Commission of Rs85.03 billion and stuck to its original offer of Rs10 billion for a stake in Pakistan International Airlines (PIA), ending the bidding process of the national flag carrier’s… pic.twitter.com/KT1wSWtd9M

— Business Recorder (@brecordernews) October 31, 2024

Read: Only One Buyer Steps Up in PIA Privatization Bidding

Blue World City proposed Rs10 billion at this public auction, merely 12% of the endorsed Rs85 billion by the Cabinet Committee on Privatization.

The base price was $305 million in U.S. dollars, and the offer was a mere $36 million.

Before the bid opening, the Privatisation Commission board and the Cabinet Committee on Privatization convened. No government ministers attended the ceremony; only two federal secretaries attended.

Following recommendations from the Privatisation Commission board, the Cabinet Committee on Privatisation set the sale price for 60% of the shares at Rs85.03 billion. The government invited the sole bidder to match this price, which Blue World City declined.

Saad Nazir, owner of Blue World City, stated, “After considering the government’s price, we chose to submit our highest offer of Rs10 billion.”

Only Blue World City proceeded with the bidding out of six pre-qualified entities. The others withdrew, citing unacceptable government terms regarding tax obligations and other investment requirements.

. PIA privatisation totally messed up. Shows the total lack of investment interest from domestic & foreign investors. Poorly handled by the government pic.twitter.com/qVio9N3PET

— Mohammad Zubair (@Real_MZubair) October 31, 2024

This marked the government’s first significant attempt to privatize its fourth-largest loss-making entity, ending abruptly at the bidding stage. The government segregated approximately Rs 625 billion of PIA’s debt into a separate entity to enhance the deal’s attractiveness.

Post-separation, PIA was left with liabilities of Rs202 billion against assets of approximately Rs163 billion, assessed at book value. Yet, the bidders were reluctant to assume tax and contingent liabilities.

This unsuccessful privatization could influence the government’s future privatization plans.

The government initially offered a 51% to 100% stake in the airline but then decided on 60%.

The government rejected the bidders’ requests for tax reductions, offering a decade-long exemption from new taxes. The new owner would also need to reduce the average fleet age from 17 to 10 years within five years, necessitating new aircraft.

Blue World City’s bidding consortium included Blue World Aviation and IRIS Communication Limited.

TAGGED:FeaturedPak­istan
Share This Article
Facebook Twitter Pinterest Whatsapp Whatsapp LinkedIn Email Copy Link Print
Leave a comment

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Advertisement

HBL Saving Made Easy
HBL Saving Made Easy

Recent Posts

Justin Bieber Demons

Justin Bieber Battles Demons Despite Regaining Confidence

Delta Airlines Boeing 767 emergency landing 2025

Delta Airlines Boeing 767 Engine Fire Forces Emergency Landing at LAX

Roman Reigns Paul Heyman betrayal

Paul Heyman Explains Why He Betrayed Roman Reigns

Post Archives

More Popular from Photonews

Emmy Nominations 2025 full list
Entertainment

Full List of Emmy Nominations 2025: Severance Leads with 27 Nods, The Penguin Follows at 24

3 Min Read
Pakistan Railways revenue 2025
Pakistan

Pakistan Railways Increase Fare by 2% Hike for Passengers

2 Min Read
1VERSE K-Pop debut 2025
Entertainment

1VERSE K-Pop Debut: North Korean Defectors Lead New Boy Band

4 Min Read
Offbeat

Rayyan Arkan Dhika: 11-Year-Old Aura Farmer Goes Viral with Spontaneous Dance

Eleven-year-old Rayyan Arkan Dhika from Indonesia has garnered global attention with his energetic dance moves. Fans…

July 13, 2025
Pakistan

Pakistan-Afghanistan Trade Reaches $989 Million in First Half of 2025

Recent data from Afghanistan's Ministry of Industry and Commerce reveals robust trade activity between Pakistan and…

July 13, 2025
Sports

WWE SmackDown Solo Sikoa Arrest for Car

WWE Men's United States Champion Solo Sikoa faced arrest during SmackDown on July 18, 2025, after…

July 19, 2025
Sindh

Police Recover Digital Evidence in Humaira Asghar Death Investigation

Police investigating the tragic death of actress Humaira Asghar have made significant progress, recovering crucial data…

July 13, 2025
PhotoNews Pakistan

Always Stay Up to Date

Subscribe to our newsletter to get our newest articles instantly!

Categories

  • World
  • Pakistan
  • Punjab
  • Sindh
  • Khyber Pakhtunkhwa
  • Balochistan
  • Azad Jammu Kashmir

 

  • Top News
  • Business
  • Entertainment
  • Sports
  • Videos
  • Tech
  • Offbeat
  • Blog

© 2024 Phototnews
All Rights Reserved.

Welcome Back!

Sign in to your account

Lost your password?