The Pakistan government is all set to sell majority of stakes in Pakistan International Airlines on October 31. There have been, however, rising concerns over the delay in sales, as only bidder has submitted prequalification documents for the privatisation of the airlines, stated Pakistani media reports.
Earlier, six entities had pre-qualified to bid for a 60% stake in PIA, which includes several Pakistani budget carriers, including Fly Jinnah, AirBlue, Arif Habib Corporation, and three consortia led by YB Holdings (Private) Limited, Pak Ethanol, and Blue World City.
Read More: Diwali 2024 Holiday In USA: List Of US States Celebrating Deepawali As Public Holiday
However, five entities have withdrawn from the PIA sale, leaving only one group, reported The News International, a Pakistani media outlet. The withdrawal of the five groups comes after the bidders, who initially agreed to a 60 percent stake, pushed for complete ownership of PIA, citing concerns such as the airline’s financial liabilities, outdated fleet, and operational difficulties. In response, the government increased its offer only to a 76 percent stake, after which it had only one group left as the bidder.
Read More: This Big City In Pakistan Is Most Polluted In The World, AQI Near 700 — Details
PIA auction: Investments estimated at $500 million
Acquiring PIA’s current fleet of smaller leased aircraft would require significant investment, of roughly about $500 million, for fleet renewal and operations. Additionally, the suspension of international routes to Europe and the U.S. has diminished the airline’s attractiveness. As a result, potential buyers have urged the government to reinstate these routes to enhance the airline’s profitability prospects, stated Pakistani media reports.
Keep checking for more updates
