PM Shehbaz demands ‘transparency’ in PIA privatisation process

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Prime Minister Shehbaz Sharif chairs a meeting to review the PIA privatisation process on April 25. — PID
Prime Minister Shehbaz Sharif chairs a meeting to review the PIA privatisation process on April 25. — PID

Prime Minister Shehbaz Sharif on Friday directed the relevant authorities to ensure “transparency” in the privatisation process of Pakistan International Airlines (PIA), urging its completion within the given time frame.

Months after its first attempt to sell off PIA sta­lled, the government on Thursday invited fresh bids with more incentives for buyers. Investors can submit an expression of interest by June 3, with the bidding process expected to take place between October and December. The government is offering 51 to 100 per cent shares of capital, with management control of the national flag carrier.

While chairing a meeting to review the ongoing privatisation process today, PM Shehbaz stressed that transparency must be an integral part of the procedure.

“In order to ensure transparency, the privatisation of PIA and all future state-owned enterprises must be broadcast live on television and digital platforms,” the PM said, emphasising the importance of roadshows and fully engaging investors in the privatisation process.

The meeting was informed that a comprehensive investor outreach strategy had been developed in collaboration with consultants and was being fully implemented.

Meanwhile, the prime minister was also informed about the criteria of bidding, the required time period and conditions to participate in the bidding process.

In March, Privatisation and Investment Minister Abdul Aleem Khan said that the government would complete all the steps to privatise PIA by May.

As part of reforms urged by the International Monetary Fund (IMF), the Privatisation Commission said in April 2024 that it was putting on the block a stake ranging from 51pc to 100pc of PIA.

In a newspaper advertisement, the panel set a deadline of May 3, 2024 to receive statements of interest in PIA, which had piled up arrears in the hundreds of billions of rupees, and it appointed EY Consulting as the financial adviser for the deal.

However, the deal stalled as the sole bid of Rs10 billion by the Blue World City consortium was around Rs75bn lower than the government’s expectations.

The government’s first attempt to privatise PIA cost the national exchequer $4.3 million, the National Assembly Standing Committee on Privatisation was informed on February 25 this year.

Secretary Privatisation Jawad Paul informed the committee that $4.3m had been paid to the financial adviser Ernst & Young (E&Y) out of a total fee of $6.8m, representing 63pc of the agreed payment.

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