KP ‘ready to pay more than Rs10bn’ for stake in PIA

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PESHAWAR: The Khyber Pakhtun­khwa government has formally conveyed to the federal government that it is ready to offer a bid for Pakistan International Airlines (PIA), which would surpass the highest offer of Rs10 billion by the Blue World Consortium.

In a letter addressed to Federal Minis­ter for Privatisation Aleem Khan, KP Bo­­ard of Investment and Trade (KP-BOIT) vice chairman Hassan Masood Kunwar stated they would like their intent to participate in the bidding process for the sale of PIA to the federal government.

The letter stated that on behalf of the chief minister and people of the province, they would like to express their earnest interest in participating in the bidding process for the sale of PIA.

“This letter serves as our formal intent to position the government of KP as a competitive bidder in this strategic acquisition,” the letter read.

KP Board of Investment and Trade writes to privatisation minister

Besides, it said, as the national flag carrier, PIA represents a critical asset for the nation.

“Recognising the importance of retaining PIA within the national fold, the chief minister has directed us to actively pursue the acquisition to ensure the airline remains under the control of government rather than being transferred to a private or foreign-backed entity,” the letter read.

The letter asked the federal government to consider the KP government proposal as a viable option to retain the national flag within a provincial structure, preserving PIA legacy and aligning with the public interest in maintaining national interest.

“In line with this commitment, we are prepared to offer a bid that will surpass that current highest offer of Rs10 billion by Blue World Consortium, ensuring a strong and competitive position within this process,” it said.

It said they were also looking for an immediate opportunity with the privatisation ministry team to present the province’s proposal in detail, discuss their strategic vision for PIA and elaborate their capacity to meet and exceed the highest bids.

“Please let us know a convenient time for this engagement, as we are prepared to act swiftly and decisively in our pursuit of this vital national interest,” the letter added.

Sources said the issue was discussed during a meeting attended by KP Chief Minister Ali Amin Gandapur on Thursday.

KP-BOIT vice chairman Hassan Maso­­od Kunwar told Dawn that the KP gove­rnment bidding for the national flag carrier was not political, rather a genuine attempt to save the vital national asset from being sold off at a throwaway price.

He said that KP government would offer a bid higher than the Rs10bn offered by the current highest bidder for the acquisition. He said that the federal government spent between $25m and $30m on its privatisation process while selling it for just $35m would be a grave injustice with the people of Pakistan.

Mr Kunwar claimed that the Blue World Consortium was backed by China Southern Airlines and people of Pakistan would come forward to save their pride, which had a legacy of more than 70 years. He said that KP-BOIT also showed interest in the bidding process so that other investors from across the province could get the chance to acquire the national flag carrier.

“We are not going to allow the sale of the national flag carrier at a throwaway price,” Mr Kunwar said.

He claimed that the KP government was working with technical and financial partners for the acquisition of the airline. He said that the airline would be run through experts by ending the role of political mafias.

Published in Dawn, November 2nd, 2024

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