The Government of Pakistan is set to issue a fresh call for Expressions of Interest (EoIs) for the privatization of Pakistan International Airlines (PIA), in a renewed effort to offload a majority stake in the struggling national carrier. Muhammad Ali, Adviser on Privatization, confirmed the development during an interview with Reuters, signaling a significant move in Pakistan’s broader economic reform agenda.
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The government is aiming to sell between 51% to 100% of its stake in PIA as part of its commitment to restructuring loss-making state-owned enterprises and generating revenue, a key objective under the country’s $7 billion agreement with the International Monetary Fund (IMF). The upcoming privatization push follows a failed attempt last year, when the government received only a single bid for PIA, falling short of expectations.
To address concerns raised by potential investors in the previous bidding process, the government has taken over nearly all of PIA’s legacy debt, transferring these liabilities to the state’s balance sheet. This step was aimed at cleaning up the airline’s financials and making it more attractive to investors.
According to Muhammad Ali, earlier bidders had flagged issues related to taxation and the carrier’s weak balance sheet. “In our last attempt to privatize PIA, pre-qualified bidders had some issues with taxation and the balance sheet. Those are taken care of now,” he said. The government plans to publish the new Expression of Interest by the last week of April 2025.
The privatization ministry is also revising the pre-qualification criteria and may adjust the reference price based on PIA’s updated financial statements. The government aims to complete the privatization process by the end of 2025, hoping that the revamped terms and cleaner balance sheet will attract more robust investor interest this time around.
