The Senate Standing Committee on Privatisation has sought stricter pre-qualification criteria to restrict “non-operational bidders like Blue World” from participating in the government’s second attempt to privatise the Pakistan International Airlines Corporation Limited (PIACL), Business Recorder learnt on Friday.
The committee, chaired by Senator Afnan Ullah Khan, held a meeting on Friday at the Parliament House to discuss the recent status of the entities included in the privatisation list.
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In the first attempt for the PIA sell-off last year, a total of six groups were shortlisted to bid for shares in the PIA, including Airblue Ltd., Arif Habib Corporation Ltd., Air Arabia’s Fly Jinnah, Y.B. Holdings Pvt., Pak Ethanol Pvt. and real estate consortium Blue World City.
However, the government received interest from only Blue World City out of them for a stake in the national carrier, which also later refused to match the minimum expectation of the Privatisation Commission (PC) of Rs85.03 billion and stuck to its original offer of Rs10 billion for a 60% stake in the PIA, ending the bidding process of the national flag carrier’s privatisation.
The government now plans to initiate a fresh process to privatise the national flag carrier, and may seek fresh expressions of interest later this month.
The Senate panel’s Friday meeting was informed that a total of 24 entities were on the privatisation list.
PIA, the Roosevelt Hotel, and Zarai Tarqiati Bank fall under Phase I of the privatisation list. The entities falling under Phase I will be privatised within one year, while entities included in Phases II and III will be privatised in three and five years, respectively, according to a statement from the Senate Secretariat.
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More entities could be added to the list after the completion of the Cabinet Committee on state-owned enterprises’ (SOEs) proceedings, which is being headed by Finance Minister Muhammad Aurangzeb, it added.
PC secretary Usman Akhtar Bajwa apprised the meeting that a committee had been constituted to engage investors. He was hopeful that the PC would be able to attract more investors in the second attempt to privatise the PIA.
However, the transaction structure would remain more or less the same, he informed.
The PIA returned to profit after 21 years, as the national flag carrier posted a net profit of Rs26.2 billion for the year 2024. The airline recorded an operational profit of Rs9.3 billion for 2024. The last time the PIA posted a profit was in 2003 and later remained in loss for the next two decades.
The committee on Friday also reviewed the role and functions of the Privatisation Ministry and its output over the years. Privatisation Division secretary Hammad Ali Shamimi apprised the committee that the primary role of the division was to create liaison with the federal government on ministry affairs, including participation in Parliamentary business and Public Accounts Committee.
