In a significant development in the privatisation of Pakistan International Airlines (PIA), the government has shared the final draft of bid documents with six pre-qualified bidders. The Privatisation Commission will sign these documents with the bidders on Wednesday, according to an update shared with a parliamentary panel, reported by PressTonight.
As the process moves forward, the Privatisation Commission will gather initial feedback from the bidders, advancing towards the final financial bidding scheduled for October 1. The sale includes a 60 percent stake in the national flag carrier.
Privatisation Commission Secretary Usman Bajwa provided this update to the National Assembly Standing Committee on Privatisation, chaired by MNA Farooq Sattar. Bajwa informed the panel that the draft agreement would be signed on September 25, with pre-qualified bidders expected to deposit earnest money by September 27.
The bidders conducted site visits to PIA’s facilities in Karachi in late June, followed by several pre-bid meetings held in July, August, and September. This thorough process is designed to lead up to the financial bidding, which will include live streaming for transparency.
“We uploaded the final draft bid documents on the virtual data room (VDR) on September 18, 2024,” Bajwa said. The uploaded documents include the Draft Instruction to Bidder (ITB), Shareholders Agreement (SHA), and the draft Purchase Subscription Agreement (SPS). With due diligence nearing completion, the financial bidding on October 1 will follow, with the winner requiring approvals from the Cabinet Committee on Privatisation (CCoP) and the federal cabinet before the contract is finalized.
