Pakistani investors have shown interest in acquiring Pakistan International Airlines (PIA), as the Shahbaz government remains cautious about privatizing key government-owned commercial enterprises.
According to sources, the government prefers to control sectors such as insurance, finance, road transport, logistics, and oil and gas production. Consequently, only PIA and certain electric distribution companies are considered for privatization.
The Express Tribune reported that internal resistance within the coalition govt to privatization has led to only 21 out of 87 government enterprises being actively prepared for privatization. Relevant ministries have excluded 39 companies from the privatization agenda without public explanation, and details regarding another 27 entities remain undisclosed. This selective approach means that less than a quarter of the initially considered entities are now on the privatization track due to inadequate support from various governmental departments.
Sources also reported that local airlines, including Fly Jinnah, AirSial, and AirBlue, have acquired the necessary bidding documents for the PIA, with some contemplating partnerships with foreign carriers. Despite obtaining the documents, no submissions have been made, prompting the Privatization Commission to push the submission deadline from May 3 to May 18. The government has also set up a pre-qualification committee to verify the financial eligibility of potential investors, setting a participation threshold of 30 billion PKR.
Notable Pakistani business figures such as Arif Habib, the Taba family of Lucky Cement, Habibullah Khan from Pioneer Cement, Bestway Cement, and Maple Leaf Cement have secured bidding documents. Additionally, two business groups from Sindh, Omni Group and D. Baloch Construction Company, have expressed interest. However, no regional companies have yet committed to purchasing PIA.
Out of the 87 entities identified for privatization, only 60 details have been shared by the ministries, which have advised against privatising 37 companies without specifying reasons. Of the 21 firms recommended for privatization, 15 are actively being privatized but face non-cooperation from related ministries. Six other firms, including the Postal Life Insurance Company Limited, Agricultural Development Bank Limited, and Utility Stores Corporation, have been proposed for addition to the privatization list.
The Ministry of Privatization advocates for the privatization of loss-inducing firms as a priority, suggesting the government should focus mainly on strategic sectors. It also proposes that the SOE Cabinet Committee hold the exclusive authority to modify the privatization list, addressing the ongoing lack of collaboration from pertinent ministries.