Pakistan to tackle potential bidders’ concern over PIA safety ban

Published July 3, 2024
FILE PHOTO: View of the Pakistan International Airlines (PIA) passenger plane, taken through a glass panel, at Islamabad International Airport, Pakistan — Reuters
FILE PHOTO: View of the Pakistan International Airlines (PIA) passenger plane, taken through a glass panel, at Islamabad International Airport, Pakistan — Reuters

Pakistan’s privatisation commission is addressing concerns voiced by those qualified to bid for the country’s national airline about a European Union Aviation Safety Agency (EASA) ban on the carrier, an official said on Wednesday.

The privatisation of the loss-making state-owned enterprises has long been on the International Monetary Fund (IMF)’s list of recommendations for the country, which is seeking to strike a deal with the fund for a longer term bailout this month.

The privatisation commission pre-qualified six consortiums for bidding in June and expects to conclude the privatisation process of Pakistan International Airlines (PIA) by next month.

Usman Bajwa, secretary of the commission, told a briefing the body was addressing concerns voiced by those pre-qualified by the government to bid for a stake ranging from 51 per cent to 100pc.

Previous governments avoided disposing of the flag carrier as a potentially highly unpopular move, but the country needs to unlock further funding from the IMF.

EASA banned the PIA from its most lucrative routes in Europe and Britain after a PIA plane crash in Karachi in 2020 killed nearly 100, followed by a scandal over pilot licenses.

The ban continues, costing the airline annual revenue of nearly Rs40 billion ($143.73 million), the government has told parliament.

Follow Dawn Business on X, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

Editorial

Agriculture concerns
24 Jun, 2025

Agriculture concerns

PRIME Minister Shehbaz Sharif appears relieved that the IMF did not turn down Pakistan’s request to exempt...
OIC reaction
Updated 24 Jun, 2025

OIC reaction

The bare minimum OIC can do is to take firm action against the butchery of Palestinian people and resist regime change.
NEVs, but for whom?
24 Jun, 2025

NEVs, but for whom?

THE government’s policy gymnastics following Pakistan’s unexpectedly rapid adoption of rooftop solar have ...
US aggression
Updated 23 Jun, 2025

US aggression

If there is any state in the world that the international community must be concerned about harbouring weapons of mass destruction, it is Israel.
Finishing the job
23 Jun, 2025

Finishing the job

THE federal health minister’s assertion of a 99pc reduction in polio cases in Pakistan, while impressive on the...
Exam leaks
23 Jun, 2025

Exam leaks

FOR students who put in countless hours of hard work for their secondary school exams — mainly to secure admission...