substantial offers pour in for Pakistan's state-owned airline PIA during significant privatisation drive
updated Airline Sale Sparks Major Business Interest
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Pakistan's national airline, Pakistan International Airlines (PIA), has drawn interest from some of the nation's top business groups, headed by both domestic carrier Airblue and prominent investors like Muhammad Ali Tabba and Arif Habib.
So far, five groups have rolled up their sleeves and submitted qualification documents by the June 19 deadline. Airblue Managing Director Aslam Chaudhary confirmed their participation in buying a 51% to 100% stake in PIA.
Arif Habib, on the phone, revealed his partnership with Fatima Fertilizer Ltd., Lake City, and The City School. On the other hand, Lucky Cement Ltd., Tabba's company, is leading a consortium that includes Hub Power Holdings, Kohat Cement Co., and Metro Group. Before the deadline, Fauji Fertilizer Co. also expressed its intentions to bid.
This airline sale forms part of an economic reform package designed to appease the International Monetary Fund, securing their loan program. Pakistan plans to sell its Roosevelt Hotel in New York this year and power distribution companies by June 2026.
A Key Step Towards East
The Privatisation Commission announced another group, comprising Augment Securities, Serene Air, Bahria Foundation, Mega C&S Holding, and Equitas Capital LLC as potential applicants, along with the travel conglomerate, Gerry's Group, having advanced discussions with other bidding groups to join forces.
Privatisation Adviser Muhammad Ali shared his enthusiasm about the caliber of interested parties, "We're thrilled to see some of the strongest Pakistani business groups eager to acquire PIA." The pre-qualification of bidders will be completed within a week, with due diligence starting in the first week of July.
In 2020, Pakistan's first attempt to unload the money-losing carrier failed to generate a significant response. However, since then, the government has introduced improvements, including exemptions from sales tax on purchasing new aircraft, reducing airline debt, and accepting responsibility for certain tax and litigation claims.
So, buckle up and stay tuned for updates on who will soar into the skies with Pakistan's national carrier!
[1]: Available at: https://www.bloombergquint.com/onweb/news-article/vikram-pillai-says-his-gd-hotels-to-sell-new-york-s-roosevelt-hotel[2]: Source: The News International[4]: Source: Bloomberg Quint, ProPakistani
- The sale of Pakistan International Airlines (PIA) has attracted interest from various sectors, including travel, finance, and aerospace, with businesses like Airblue, Arif Habib, and Augment Securities expressing their intent to invest.
- In the business world, this major news has sparked keen interest, with groups like Serene Air, Bahria Foundation, Equitas Capital LLC, and powerful players like Lucky Cement Ltd. submitting their qualification documents.
- The privatization of PIA is part of a broader economic reform strategy to meet the requirements of the International Monetary Fund, and also includes the sale of other assets like the Roosevelt Hotel in New York and power distribution companies.
- As the pre-qualification process progresses and due diligence begins, this potential investment in PIA could significantly impact various industries and the overall business landscape in Pakistan.
