Government aims to raise funds and reform state-owned enterprises under IMF program by selling stake in national airline.
Key Takeaways:
i) Pakistan’s government is seeking bids to privatize Pakistan International Airlines (PIA).
ii) This privatization effort is part of a broader plan to reform state-owned enterprises and secure funds under an IMF program.
iii) The government has addressed previous concerns from bidders, including transferring PIA’s debt to government books, to facilitate a successful sale.
Islamabad, Pakistan – April 17, 2025 – The Pakistani government is moving forward with the privatization of Pakistan International Airlines (PIA), seeking bids next week for a 51-100% stake in the national carrier. This move is part of a broader strategy to reform state-owned enterprises and bolster the country’s economy under an International Monetary Fund (IMF) program.
A previous attempt to privatize PIA failed due to a low offer. However, the government has since taken steps to address the issues raised by potential bidders. A key action was shifting the airline’s substantial debt to government books, making the deal more attractive to investors.
A previous attempt to privatize PIA failed due to a low offer. However, the government has since taken steps to address the issues raised by potential bidders.
The Privatization Commission Board has approved the process of seeking new bids, signaling a renewed commitment to the sale. The government hopes that these efforts will lead to a successful privatization, bringing in much-needed funds and improving the efficiency of the airline.
