Pakistani gov't to restart PIA privatisation campaign

Pakistan is expected to trigger a new expressions of interest campaign for the acquisition of a majority stake in PIA - Pakistan International Airlines (PK, Islamabad International). It will be in the second time in less than 12 months that the government has attempted to sell off the carrier. Islamabad's The News International newspaper reports on a briefing given by Privatisation Committee secretary Usman Bajwa on February 3 to the National Assembly Standing Committee on Privatisation. He said that his committee, an agency of the Ministry of Finance, was "fully prepared" for another attempt to sell PIA. A previous October 2024 auction flopped after it attracted just one PKR10b rupee (US$36m) bid, well below the PKR85b (US$305m) reserve price. While the government has shunted most of PIA's not inconsiderable debts to a newly established holding company, approximately PKR45b (US$161m) in debts remain on PIA's balance sheet. In the wash-up of the failed auction, that remaining debt was identified as a significant deterrent to would-be buyers. The government "now plans to devise a mechanism" to remove the liabilities from the books, saying this will make PIA a more saleable proposition.<br/>