Pakistan International Airlines: Pakistan authorities have decided to renew the sale of its sale after an attempt to sell the government airline Pakistan International Airlines (PIA) last year. Privatization of PIA, which is facing cash crisis, has been considered for years and was bid in 2024, but the government failed to attract a big buyer.
Pakistan is not getting buyers
The government of Pakistan said that the only bidding company offered only 10 billion rupees which was rejected. Privatization and Investment Minister Abdul Alim Khan said last month that the privatization work of PIA will be done by May 2025. It was decided to start the sale process from next week in the meeting of the privatization Commission on Wednesday (16 April 2025). The meeting was chaired by the chairman of the Commission and advisor to the Prime Minister on privatization.
Pia has been struggling with financial crisis for many years
The statement said, “There is a plan to publish a new advertisement for the expression of interest for the separation of PIACL.” It said that a meeting will be held to consider the remaining items of the agenda. The PIA has been facing financial crisis for the last several years. This problem came to light in 2023 when 7,000 PIA employees did not get the salary of November 2023. Earlier, the European Union banned the PIA in 2020 due to security concerns.
The Commission has approved the bid for privatization of 51 per cent to 100 per cent shares of Pakistan International Airlines Corporation Limited (PIACL). According to FY 2024, the PIA earned an operating profit of Rs 3.9 billion and a net profit of Rs 2.26 billion. The airline went into losses in 2011 and was running on a government subsidy of billions of rupees.
https://www.abplive.com/news/world/pakistan-is-facing-cash-crunch-want-to-sell-airline-pia-can-not-find-buyers-2927657
