The privatization of Pakistan International Airlines (PIA) has gained momentum.
The Standing Committee on Privatization, chaired by Senator Talal Chaudhry, discussed development the development of the PIA’s privatization. Usman Bajwa, the Secretary of the Privatization Commission, briefed the committee on the financial commitments required from prospective buyers. He outlined that the new owner would need to invest approximately PKR 425 billion in PIA operations immediately. Furthermore, an investment of USD 500 million is anticipated over the next three years.
The committee has agreed to transfer 75% of PIA’s shares to five interested buyers. Three of six companies that showed interest have expressed significant intent to purchase PIA, with the privatization process slated for completion by October 1, 2024. However, Bajwa noted that the bidding process may have to be restarted if the due diligence process is not completed in time.
During the session, Chairman Talal Chaudhry voiced his concerns regarding PIA’s current operational status, highlighting the absence of flights from Faisalabad, a major industrial city, to other domestic locations. This situation underscores the urgency and complexity of the privatization efforts.
The meeting also shed light on the substantial fees paid to financial advisors amidst the ongoing privatization processes of various institutions, including PIA. Despite limited progress in some areas, such as the Jinnah Convention Center, advisors have been compensated generously. Over the past five years, nearly PKR 2 billion has been paid out, raising questions about the efficiency and results of these expenditures. The committee’s revelations indicate a need for greater accountability and effectiveness in managing the privatization processes.
