The Punjab government reversed its decision to purchase Pakistan International Airlines (PIA). Meanwhile, Khyber Pakhtunkhwa (KP) Chief Minister Ali Amin Gandapur committed to outbidding the Rs10 billion offer from the Blue World City consortium.
Last week, the privatization of PIA stalled when the sole bid fell Rs75 billion short of the government’s expectations. The Privatisation Commission had set a minimum price of Rs85.03 billion but only received a Rs10 billion bid.
At a press conference in Lahore, Punjab Information Minister Azma Bokhari clarified, “Mian Nawaz Sharif never said the Punjab government planned to buy PIA.” She criticized the KP government’s bid for PIA, noting its financial struggles to pay salaries.
Bokhari commented, “It’s ludicrous for the KP government to consider buying PIA when it can’t even pay its employees.” She found it absurd that Punjab Chief Minister Maryam Nawaz would follow KP CM Gandapur’s interest in the airline.
She emphasized that Nawaz Sharif had never suggested purchasing PIA. However, CM Gandapur declared his readiness to surpass the current offer.
The KP government initially surprised many by offering to buy the struggling airline. This move sparked debate over whether it was a serious bid or a provocation.
Nawaz Sharif mentioned in New York that Maryam Nawaz had considered launching a new airline, “Air Punjab,” or buying PIA. He advised her to consult further on the acquisition.
At the presser, Ms. Bokhari reiterated that the former PM had not planned to purchase PIA. She acknowledged a nationwide desire to enhance the airline and noted potential investments from Karachi as a positive development.
Federal Minister Aleem Khan praised both provincial governments for their interest in PIA. He mentioned plans to settle Rs200 billion of the airline’s liabilities before selling it to a private entity.
“About Rs600 billion of PIA’s Rs830 billion debt has been managed, leaving the rest for the private buyer,” he explained. However, demands from potential buyers for zero GST on new aircraft purchases conflicted with IMF agreements.
CM Gandapur, determined, stated, “KP is financially stable and ready to buy PIA. We will maintain it under government control and not let it sell cheaply.”
He mentioned support from expatriates in KP, who offered donations to keep PIA under national management.
The KP Board of Investment and Trade has formally shown interest in buying the airline. Barrister Muhammad Ali Saif, the chief minister’s adviser, confirmed the bid’s sincerity and professional intent to operate the airline.
