Privatisation and Investment Minister Abdul Aleem Khan has announced that the government is set to finalize the privatisation of Pakistan International Airlines (PIA) within the next three months. Speaking on Thursday, he emphasized that all necessary steps were being taken to attract serious investors and ensure a smooth transition as part of the broader economic reforms suggested by the International Monetary Fund (IMF).
A Second Attempt at Privatisation
Earlier, in April 2024, the Privatisation Commission had put up a stake ranging from 51% to 100% of the national carrier for sale. However, the first attempt at privatisation failed, costing the national exchequer $4.3 million. According to a briefing given to the National Assembly Standing Committee on Privatisation in February, the lack of buyer interest was attributed to multiple factors, including:
• The 18% General Sales Tax (GST) on the purchase of new aircraft
• PIA’s existing financial liabilities
• Other structural and operational inefficiencies
Recognizing these challenges, the government has now devised a revised roadmap to make the airline’s privatisation more attractive to potential buyers.
Addressing Investor Concerns
According to Aleem Khan, all concerns raised by interested parties have been taken into account, and necessary adjustments are being made to align with their expectations. The government is highly hopeful that this time around, investors will highlight greater interest in acquiring a stake in PIA.
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The minister reiterated that, despite its current financial struggles, PIA has the potential to become profitable once again. With strategic restructuring and better management. Aleem keeps on believing that the airline can return to its former glory and regain credibility in the global aviation market.
Expansion into International Markets
One of the key factors making PIA’s privatization more appealing is its recent re-entry into the European aviation market. The minister stated that flights to Europe have already resumed, and in the next three months, PIA will restart flights to the UK.
Looking ahead, he revealed that the next phase of expansion will include direct flights to the United States and the Far East, further strengthening international presence of PIA.
Restoring PIA’s Reputation
Aleem Khan expressed confidence that with positive reforms and strong leadership, PIA will once again become the first choice for travelers. He assured that the government is highly dedicated to build up again the reputation of the airline and restoring its credibility in the aviation industry.
“There is no doubt that PIA still has the capacity to become a profitable airline, and we are working to ensure that occurs,” he concluded.