The Government of Pakistan has invited expressions of interest from potential investors for the privatization of Pakistan International Airlines Corporation Ltd. (PIACL), with a submission deadline of June 3.
This move aligns with the International Monetary Fund’s directive to divest loss-making state-owned enterprises.
According to a notice published by the Ministry of Privatization, the government aims to sell between 51 and 100 percent of its stake in PIA.
This follows the Privatization Commission Board’s approval of pre-qualification criteria on April 17. Last fiscal year, PIA operated 268 flights weekly, serving approximately four million passengers across 30 destinations.
This is Pakistan’s second recent attempt to offload the national carrier. A previous effort in 2023 failed after receiving only one underwhelming bid from a real estate firm. To attract more competitive offers this time, the government has proposed incentives for prequalified bidders, including sales tax exemptions on aircraft acquisition and measures to enhance PIA’s financial standing.
PIA recently posted its first operational profit in over 20 years, reporting $33.48 million in earnings. The government has already assumed most of PIA’s legacy debt and also plans to privatize its Roosevelt Hotel property in New York. Demand in Pakistan’s aviation market is projected to grow at 6.2 percent annually through FY29.
