Pakistan moves to finalize PIA divestment by fiscal year's end

The Pakistani government plans to complete the divestment of its national airline by the end of the fiscal year.

The government will issue a fresh expression of interest later this month for Pakistan International Airlines (PIA), Privatization Adviser to the Government Muhammad Ali told Nukta on Thursday.

Last year, the government planned to sell shares in PIA but received only a solitary bid, which fell short of the reference price of around $300 million. “The government will advertise the expression of interest by the last week of April, with plans to sell shares by the end of the fiscal year,” Ali said.

The issues during the last round of bidding related to taxes and certain balance sheet items have now been resolved, he added. The reference price will be revised following the cleaning of the balance sheet.

Ali also said the government has appointed Jones Lang LaSalle (JLL) to advise on exploring the possibility of selling Roosevelt Hotel. Options include either selling the hotel outright or partnering with a developer to generate higher proceeds.

In 2023, PIA suffered a loss of PKR 75 billion, following a PKR 88 billion loss the previous year. However, this year the PIA has turned a profit for the first time in 21 years and its accounts are expected to be released in the next few days.