Privatization Ministry seeks to attract more investors for the debt-ridden national carrier
Key Takeaways:
• The deadline for expressions of interest in purchasing Pakistan International Airlines (PIA) has been extended to June 19, 2025.
• Pakistan is seeking to sell a 51% to 100% stake in PIA as part of its IMF-mandated reforms.
• The government has taken on most of PIA’s debt to make the airline more attractive to potential buyers.
Islamabad, Pakistan – Pakistan has extended the deadline for submitting expressions of interest for the potential purchase of Pakistan International Airlines (PIA) to June 19, 2025, according to an announcement by the country’s privatization ministry on Tuesday. The original deadline was set for June 3.
The ministry has not yet disclosed the reason for the extension, nor has it revealed whether any expressions of interest have been received to date. This move comes as Pakistan aims to offload a 51% to 100% stake in the financially struggling airline. The privatization is a key component of the reforms committed to under a $7 billion International Monetary Fund (IMF) program, which requires Pakistan to restructure and seek funds for its cash-draining state-owned enterprises.
An attempt to privatize PIA last year was unsuccessful, with only one offer received that fell significantly short of the government’s minimum asking price of over $300 million. To make the deal more attractive, Pakistan has transferred the majority of PIA’s legacy debt and liabilities to government accounts, addressing a major concern raised by potential bidders during the previous attempt.
In April, PIA reported its first annual profit in more than twenty years, a development that could potentially attract more interest from investors.
