The government plans to sell 51% to 100% stakes in the national airline, including offering control of its management
The Pakistan government has extended the date for submitting expressions of interest (EOIs) for buying majority stakes in the national flag carrier — Pakistan International Airlines — till June 19.
Sources told Nukta that the Privatization Commission extended the deadline from June 3 due to Eidul Adha festivities and requests from potential bidders for more time to study the PIA's finances.
The privatization of and reduction in losses of state-run companies has been the one of the key conditions of the International Monetary Fund under the $7 billion loan program.
The IMF recently approved disbursement of $1 billion under the program on May 9 after Pakistan successfully completed the first review. So far, the lender has disbursed $2 billion.
The government plans to sell 51% to 100% stakes in the national airline, including offering control of its management.
To make the latest privatization bid successful, the government has offered new incentives, including GST exemptions on new aircraft and shifting PIA's debt off its balance sheet. These changes aim to present PIA with a “net-zero balance sheet” to potential buyers.
A revised price benchmark for the deal may also be set soon.
The current plan offers a simplified and cleaner transaction compared to an earlier failed attempt, which offered 60% of shares with an optional 15% top-up. Back then, PIA's negative equity of PKR 45 billion and 18% GST on aircraft were key roadblocks.
In October, the government got a solitary bid of PKR 10 billion for 60% stake against a reference price of PKR 85 billion.
Comments
See what people are discussing