Pakistan is set to take a major step toward restructuring its national airline, as bidding for the privatization of 75% shares of Pakistan International Airlines (PIA) will be held in Islamabad tomorrow, according to officials from the Privatization Commission.
Pre-qualified bidder groups will submit their sealed bids between 10:45am and 11:15am, officials said. The bids will be formally opened at 3:30 pm in the presence of the media, ensuring transparency in the process.
According to the Privatization Commission, bids will only be opened if they exceed the approved reserve price.
The Privatization Commission Board will first approve the reserve price for the sale. After this approval, the final decision will be taken by the Cabinet Committee on Privatization.
Officials said if a bid falls below the reserve price, the highest bidder will be given an opportunity to match the price.
Structure of 75% stake sale
Under the privatization plan, 92.5% of the proceeds from the 75% stake will be used directly for investment in PIA, while 7.5% of the amount will be transferred to the government.
The successful bidder will then be given 90 days to purchase the remaining 25% shares, completing full ownership.
Privatization Commission officials said the potential new investor will be required to invest Rs80 billion over a period of five years. This investment is aimed at reviving operations, improving services, and strengthening the airline’s financial position.
Job security and employee benefits
To address concerns of PIA employees, officials confirmed that job security will be guaranteed for one year following privatization. In addition, pension and post-retirement benefits will remain the responsibility of the holding company, ensuring continuity for existing staff.
The privatization of PIA is being viewed as a critical move toward reducing financial losses and improving efficiency at the national carrier. Government officials say the structured bidding process and investment requirements are designed to protect both public interest and the airline’s long-term future.
