The Privatisation Commission on Tuesday recommended a transaction structure for the second attempt at privatizing Pakistan International Airlines Company Ltd (PIACL), proposing the divestment of 51% to 100% of its share capital along with management control. The final terms and conditions for the equity transfer will be determined during the bidding process and outlined in the bid documents, subject to approval by the Cabinet Committee on Privatisation.
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This decision was made during a meeting of the Privatisation Commission Board, chaired by newly appointed Adviser to the Prime Minister on Privatisation, Muhammad Ali. Prime Minister Shehbaz Sharif has accelerated the privatisation timeline for PIA, moving the anticipated completion from October to June 2025.
The previous privatisation attempt in October last year was unsuccessful, as the sole bidder’s offer of Rs10 billion fell significantly short of the Privatisation Commission’s expected minimum of Rs85 billion.
In addition, the board discussed privatisation options for the Roosevelt Hotel Corporation in New York, resolving to consult with the financial adviser before finalizing any decisions. Both PIACL and the Roosevelt Hotel remain key priorities on the government’s 2025 privatisation agenda.
The government’s push to privatize PIA aligns with broader efforts to address fiscal challenges and improve the efficiency of state-owned enterprises. With the revised timeline, the administration aims to attract competitive bidders and ensure a smooth transition of management to restore the airline’s financial and operational stability.
