KARACHI – The Privatization Commission has once again failed to attract foreign investor interest in the sale of Pakistan International Airlines (PIA), casting doubt over the government’s efforts to revive the struggling national carrier.
Despite ongoing attempts to relaunch the privatization process, no foreign investment groups have come forward to participate. This marks another setback in the government’s bid to offload its majority stake in PIA.
In addition, several prominent Pakistani business groups have also been excluded from the next phase of the process. Out of the eight consortiums that submitted applications, only five were shortlisted, while three were disqualified.
The shortlisted candidates include Airblue, the AirSial Consortium and three other unnamed groups.
Meanwhile, a bid by PIA employees to acquire the airline was also rejected, further narrowing the pool of potential buyers.
PIA Privatisation
Earlier this year, Pakistan launched third attempt to privatize its national airline, Pakistan International Airlines (PIA), after two previous efforts failed due to low investor interest and financial concerns.
This government was also offering full management control, along with new incentives such as tax exemptions on aircraft, financial support, and legal protections.
To make PIA more attractive, the government significantly reduced its liabilities from Rs 864 billion to Rs 190 billion by transferring debt and non-core assets to a new holding company. The goal is to complete the privatization by December 2025.
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