Pakistan aims to revive PIA privatisation with fresh bids by April-end

In a renewed push to privatize its national carrier, Pakistan International Airlines (PIA), the Pakistani government plans to invite fresh expressions of interest (EOIs) by the end of April 2025. This move comes within a mere two days after PIA reported its first annual profit in over two decades. 

Back in 2024, the privatisation attempt failed due to receiving only a single, underwhelming offer, significantly below the asking price of over $300 million. 

The government aims to offload a 51% to 100% stake in the debt-laden airline as part of broader economic reforms tied to a $7 billion International Monetary Fund (IMF) program. To address concerns raised by potential bidders in the earlier attempt, Pakistan has transferred most of PIA's legacy debt to government accounts and is revising pre-qualification criteria and the reference price based on the airline's updated financials. ​ 

Speaking to Reuters, a government advisor on privatisation Muhammad Ali stated, "We plan to publish the new Expression of Interest (EoI) by the last week of April 2025," with the goal of completing the privatization before the year's end. ​ 

"We are also revising the pre-qualification criteria," he said, adding that the reference price could also be revised keeping in view the latest accounts and changes in the balance sheet.

This privatization initiative aligns with Prime Minister Shehbaz Sharif's commitment to divest all state-owned enterprises as part of Pakistan's economic restructuring efforts.