US EditionPIA All Set to Go Under the Hammer Today
The government offers incentives including full divestment and debt transfer to attract bidders for 75% of PIA shares in a publicly broadcast process.
- On Tuesday, December 23, the Government of Pakistan will hold open bidding for 75% of Pakistan International Airlines Corporation Limited, with sealed bids due at 10:30am and bids opened at 3:30pm during a live televised ceremony.
- An earlier privatisation attempt failed after a $36 million bid missed a $305m floor price, around 80% of Pakistan International Airlines' debt was transferred to the state, and Fauji Fertiliser Company Ltd withdrew last week.
- Three prequalified bidders have lodged earnest money, with the winning bidder paying two-thirds within 90 days and 92.5% reinvested in PIA; the government retains a 25% stake.
- The government said PIA employees will receive 12 months of job security, with pension liabilities, medical benefits, and post-retirement perks handled by the holding company, while new owners pay current salaries.
- The Cabinet Committee on Privatization will approve and announce the reference price when bids are opened, with PIA's rights to 78 destinations and about 170 landing slots worldwide attracting buyers.
10 Articles
10 Articles
PIA all set to go under the hammer today
The government is set to auction 75% shares of PIA on Tuesday in Islamabad, marking a significant step towards the airline's privatisation. The successful bidder will be granted a 90-day window to purchase the remaining 25% of shares. Sources said the potential new investor is required to commit an investment of Rs80 billion over the next five years. Of the proceeds from the sale of 75% of PIA's shares, 92.5% will be allocated to the airline for…
Pakistan News: Pakistan's National Airline PIA to be Auctioned Today Amid Economic Crisis
Pakistan is set to witness a pivotal moment in its economic history today as its national flag carrier, Pakistan International Airlines (PIA), is slated for auction. The government plans to divest a significant 75% stake in the airline, a move driven. By severe economic challenges and the stringent conditions imposed by the International Monetary Fund (IMF). The deadline for submitting bids is December 23rd. Initially, four entities had expresse…
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