ISLAMABAD: Pakistan International Airlines (PIA) is expected to be sold to a foreign government after the Privatisation Commission rejected a Rs 10 billion bid from the Blue World Consortium, ARY News reported on Wednesday, citing sources.
Pakistan is seeking to sell a 51-100% stake in the financially struggling PIA to generate funds and implement reforms under a $7 billion International Monetary Fund (IMF) program.
According to reports, the Privatisation Commission dismissed the Rs 10 billion bid from the Blue World Consortium. Sources suggest that PIA could be sold to a foreign government under a government-to-government (G2G) agreement, with Qatar or Abu Dhabi as potential buyers.
The Strategic Investment Facilitation Council (SIFC) is said to be planning to invite expressions of interest (EOIs) from foreign investors by November 30. Several terms have already been outlined to facilitate smooth negotiations with the governments of Qatar or Abu Dhabi.
Earlier in October, the final bidding for PIA’s privatisation received only one bid for a 60% stake, valued at Rs 10 billion ($36 million), far below the government’s set minimum price of Rs 85 billion. In June, six groups were pre-qualified, but only the Blue World Consortium, a real estate development firm, participated in the bidding process.
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