Privatisation Commission approves second attempt to privatise PIA

In Islamabad, on March 19, 2025, the Privatisation Commission recommended a transaction structure to the Cabinet Committee for the divestment of Pakistan International Airlines Company Ltd (PIACL). This second attempt involves selling between 51 and 100 percent of the airline's shares along with management control. The previous attempt to privatise the airline took place in October 2023 but failed due to an inadequate bid that fell significantly below expectations. The minimum expectations of Rs85 billion set by the commission were not met when the sole bidder offered only Rs10 billion, leading to the failure of the transaction. The acceleration of the privatisation process under Prime Minister Shehbaz Sharif aims to conclude by June 2025, which is a significant shift from the initially planned October timeline. This urgency reflects the government's recognition of the need for reform and financial revitalization in the national carrier, which has been facing mounting challenges in recent years. Additionally, the board has also discussed the potential privatisation of the Roosevelt Hotel Corporation in New York, indicating a broader focus on divestment strategies to alleviate financial pressures facing the government. The completion of these efforts, especially the PIACL deal, is crucial for the government’s agenda for 2025 and is expected to yield substantial revenue and reinforce investor confidence in the country’s economic landscape. The privatisation of such state assets is seen as a necessary step towards fiscal stability and operational efficiency. As discussions proceed, stakeholders from both private sectors and government will likely keep a close eye on how these negotiations unfold, with the final terms and conditions for the equity transfer yet to be determined during the bidding process.