ISLAMABAD: In a big update about Pakistan International Airlines (PIA), the government said on Thursday that 10 major groups have finished their initial paperwork, showing they’re very interested in buying PIA. Among these, three private airlines already flying in Pakistan are also interested.
The news came during a talk with Abdul Aleem Khan, who’s in charge of Privatization, Investment Board, and Transport for the government. He explained that these groups are also teaming up with local and foreign partners to make offers.
Khan added that the deadline for sending in Letters of Intent (LoIs) for PIA’s privatization has been pushed back by 15 days. The new deadline is May 18, instead of the previous one, May 3. He made it clear that there won’t be any more extensions.
In addition, it’s reported that Arif Habib has shown interest in buying a part of PIA, and Akram Wali Muhammad, from Gerry’s Group, has made an initial offer.
Khan tried to address worries about the news not being accurate. He said things are looking good for PIA. He believes PIA can become profitable, especially with new planes. Khan stressed the importance of privatizing PIA, noting the huge losses it’s had, around 830 billion rupees, and said privatization would be good for the country.
Responding to criticism from PPP Chairman Bilawal Bhutto Zardari, Khan said he’ll talk to him to explain why privatization is important.
Khan said the government could save lots of money by privatizing state-owned businesses and use that money for social projects. He said it’s not the government’s job to run businesses but to create an environment where businesses can thrive.
He also mentioned other government-owned companies like Steel Mill, Discos, First Women Bank, and House Building Finance Corporation are also being privatized. He said this was important to make them modern and profitable. He assured that all of PIA’s responsibilities are being taken care of before privatization to ensure a good deal.
Khan said the government wants to privatize six to seven Discos, keeping three under government control. He also talked about the profitability of PIA flights to Saudi Arabia for Hajj and Umrah, suggesting similar deals with other countries.
Lastly, Khan said the 10 big companies interested in PIA’s privatization want more time to partner with international firms. The Prime Minister has approved a two-week extension for them.
