IslamabadThe government is preparing to resume the privatization process of Pakistan International Airlines (PIA) this week, aiming to revitalize the national carrier after years of financial struggles and regulatory challenges.
An official at the Ministry’s Privatization Authority confirmed that the new phase will begin with the appointment of a financial advisor. The Privatization Commission board is expected to meet this week, tentatively on Tuesday, to approve the process for appointing the advisor.
This renewed effort comes on the heels of a major development: The European Commission and the European Aviation Safety Agency (EASA) have lifted their three-year moratorium on PIA, paving the way for the airline to resume its flights to Europe. PIA has announced plans to resume its European operations in January 2024, starting with flights to Paris.
PIA faced a ban from the European Aviation Safety Agency (EASA) in 2020 after a tragic accident in Karachi that claimed nearly 100 lives, followed by revelations of pilot licensing irregularities. The ban prevented the airline from using its main European and British routes, severely affecting its operations and financial stability.
While lifting the ban has improved PIA’s prospects, the privatization process still faces obstacles. In October, the Blue World City consortium, the sole bidder for PIA’s 60% stake, refused to meet the government’s minimum projection of 85.03 billion rupees, and instead offered 10 billion rupees, effectively stalling the previous bidding process. .
The government’s move to revive the privatization of PIA coincides with the lifting of regulatory barriers, which have deterred potential bidders. An official familiar with the process expressed optimism: “The lifting of the EASA ban changes the landscape for PIA, making it a more attractive opportunity for investors.”
Through this renewed effort, the government hopes to attract credible buyers and position PIA for a sustainable future, benefiting from its regained access to lucrative international routes.