Pakistan has taken a significant step to sell its state-owned Pakistan International Airlines (PIA) under the pressure from the International Monetary Fund (IMF), as per IMF’s circumstances for a USD 7 billion loan package deal. Who are the bidders for privatization?
Pakistan has taken a significant step to sell its state-owned Pakistan International Airlines (PIA) under the pressure from the International Monetary Fund (IMF), as per IMF’s circumstances for a USD 7 billion loan package deal, as per studies. IMF staff is evaluating and reviewing the USD 7 programme and Pakistan has to persuade it to safe subsequent tranche of USD 1 billion. Pakistani authorities tried to sell PIA final 12 months in 2024, due to heavy losses.
The authorities has put up on the market a stake starting from 51% to 100%. However it couldn’t get a lovely supply, with the one bid of Rs 10 billion from a neighborhood actual property developer. The bid was rejected and the plan was cancelled.
PM Shehbaz Sharif held assembly for privatization of PIA
Pakistan PM Shehbaz Sharif held a gathering with all company entities and firm representatives taking part within the privatisation technique of the nationwide airline, in accordance to a press launch posted on X by state broadcaster PTV News.
“PIA’s bidding will take place on December 23, which will be broadcast live on all media,” PM Shehbaz Sharif stated, saying privatization is to restore the misplaced status of PIA.
“We are ensuring transparency and merit in the privatisation process of PIA,” he was quoted as saying.
Who are the bidders for privatization?
PIA sell out can be the Pakistan’s first main privatisation in practically twenty years. Four bidders have been prequalified for it, together with, Lucky Cement Consortium, Arif Habib Corporation Consortium, Air Blue Limited and Fauji Fertiliser Company Limited, which is a part of the military-run Fauji Foundation, as per Dawn.
Privatisation Minister Muhammad Ali advised Reuters that Pakistan is focusing on Rs 86 billion from privatisation proceeds this 12 months. In the final spherical of bidding, the federal government was set to obtain 15 % of the earnings from the PIA sale. PIA goes via a disaster with years of dangerous funds and corruption.
Pakistan is closely counting on privatization to repay loans and obtain IMF bailouts. Pakistan is the IMF’s fifth-largest debtor, and gone into chapter 11. It has taken greater than 20 loans from the IMF since 1958.
