The privatization process of Pakistan International Airlines (PIA) is expected to conclude by the first week of October 2024, according to Arif Habib, Chairman of the Arif Habib Group. Speaking to journalists at the Naya Nazimabad Gymkhana, Habib expressed confidence in the timeline for the airline’s bidding process, stating, “We expect the PIA bidding process to be finalized by early October.”
Habib highlighted that the new buyer will be required to add at least 20 aircraft to PIA’s fleet to ensure smooth operations. He believes that with strategic changes, PIA can shift from its current loss-making status to a profitable entity.
The privatization plan includes offering 75% of PIA’s shares for bidding, allowing the prospective buyer to gain majority control. However, the airline cannot be sold again for three years post-privatization.
One of the key hurdles PIA faces is its enormous debt, amounting to Rs 800 billion, including interest payments. Habib explained that Rs 600 billion of this debt will be transferred to a holding company, while the remaining Rs 200 billion will be assigned to the buyer. Much of this debt includes tax liabilities and civil aviation dues. Habib emphasized that if the buyers are given ample time to settle these debts, it could significantly ease the burden and support the airline’s recovery.
Habib added, “PIA is operationally viable, and with the resolution of its debt and staffing issues, it could quickly become profitable.”
The long-awaited privatization of PIA is seen as a crucial step towards reviving the national carrier, with the successful bidding process in October 2024 marking a potential turning point for its future.
