Pakistan has delayed the final auction for state-owned Pakistan International Airlines (PIA) by two months until October 1 after potential bidders requested more information to assess the carrier, Bloomberg reported on Monday, citing sources familiar with the matter.
Islamabad plans to sell PIA and outsource three of its airports in an effort to curtail losses and enhance its foreign exchange reserves as the country’s fragile $350 billion economy faces a balance of payment crisis.
Pakistan aims to sell between 51 percent and 100 percent of the carrier, which has not reported an annual profit for nearly two decades. In June, Pakistan selected six bidders for the airline, including a consortium led by the Yunus Brothers Group, one of the nation’s largest business conglomerates, and another by businessman Arif Habib.
The privatization of the loss-making state-owned enterprise has long been recommended by the International Monetary Fund (IMF), with which Pakistan signed a $7 billion loan agreement this month. In July, Pakistan’s government said it expected to announce the auction date within 10 days.
The bidders reportedly waiting for the airline’s latest audited accounts, clarity on flights to Europe that are currently banned, and details on aircraft lease agreements.
