Federal Minister for Privatisation Abdul Aleem Khan has said the federal government has no objection if a provincial government wants to take over Pakistan International Airlines (PIA).
He believes that with the provincial ownership, the national flag carrier, which is running short on cash, will be rendered profitable.
Speaking at a news conference in Lahore, Mr. Khan maintained that in reality, much of the preparation work for the privatisation process for Pakistan International Airlines had already been made before my appointment, stating he deals more with marketing sales opportunities rather than trying to refashion the airline.
“There existed the privatisation framework ahead of my appointment. Then, PIA carried the deficit of Rs830 billion. So I could do nothing to change that either,” he said.
He confirmed that the federal government would not object if any provincial government stepped forward with an acquisition proposal.
“Whether it’s the governments of KP, Punjab, or Sindh, we welcome any provincial interest in buying PIA. If today, Punjab, KP, Sindh, and Balochistan each took a stake, PIA could become profitable,” he asserted.
Khan’s comments follow recent suggestions from former Prime Minister Nawaz Sharif that the Punjab government should consider purchasing PIA.
Khyber-Pakhtunkhwa has also formally expressed interest in the acquisition already, proposing to outbid private sector offers to retain the airline under government control.
The expression of interest from Punjab and KP followed the final bidding process for the privatisation of Pakistan International Airlines (PIA), which garnered only one bid of Rs10 billion for a 60 per cent stake, according to the Privatisation Ministry on Thursday.
In June, the government shortlisted six groups for bidding, but only the real estate developer Blue World City submitted a bid, which fell below the government’s minimum set price of Rs85 billion.
Facing financial constraints, Pakistan seeks to sell a 51-100 per cent stake in PIA to raise funds and revamp state-owned enterprises under a $7 billion IMF program.
The Privatisation Commission asked Blue World City to match the minimum price, but Chairman Saad Nazir defended their offer, saying at the ceremony, “We wish the government well if they choose not to accept our bid.”
