Pakistan has received three bids for the privatisation of its national carrier, Pakistan International Airlines (PIA), as part of the government’s effort to sell loss‑making state firms. The live‑broadcast bidding process is seen as a crucial test of Islamabad’s ability to privatise its embattled enterprises. The three consortia—led by private Pakistani carrier Air Blue, Lucky Cement, and investment firm Arif Habib—each offered to purchase a 75 % stake in PIA. The government will later announce a reference price for the airline and will declare a winner if the minimum bid is met.
This development follows a failed privatisation attempt last year, when only a single bid of $36 million was received—far below the government’s expected $300‑305 million. PIA has been grappling with severe financial challenges, reporting a net loss of $437 000 in 2022 on revenue of $854 000. The airline was delisted from the Pakistan Stock Exchange and has struggled with safety lapses and mismanagement. After a fatal crash in Karachi, it was banned in 2020 from flying to the European Union, Britain and the United States. Although flights to Europe and Britain have since resumed, operations to the US remain suspended.
The privatisation of PIA forms part of a broader government initiative to divest dozens of cash‑burning enterprises by 2029, under a $7 billion loan programme agreed with the International Monetary Fund. Many of these companies have incurred significant losses due to mismanagement and corruption, forcing the state to provide financial support to keep them afloat. With only 18 of its 34 planes in active service, PIA’s financial struggles have raised concerns about its viability. A successful privatisation could pave the way for the government to address its other loss‑making firms.
The outcome of the bidding process will be closely watched, as it could have significant implications for Pakistan’s economy and its ability to manage state‑owned enterprises.
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