Pakistan’s privatisation commission is actively working to address concerns raised by potential bidders for the national airline, Pakistan International Airlines (PIA), regarding a ban imposed by the European Union Aviation Safety Agency (EASA). The ban has had significant financial implications for PIA, leading to a loss of nearly Rs40 billion annually.
Privatising state-owned enterprises like PIA has been a long-standing recommendation from the IMF, and the government aims to complete the process by next month. Despite previous reluctance to privatise the national carrier due to public sentiment, the urgent need for funding has pushed the government to move forward with the privatisation.
The privatisation commission has pre-qualified six consortiums for bidding, with stakes ranging from 51% to 100%. Addressing concerns from potential bidders is crucial for a successful privatisation process.
EASA banned PIA from operating lucrative routes in Europe and Britain following a plane crash in 2020 and subsequent licensing scandal. The ban underscores the urgency for privatisation and unlocking IMF funding for Pakistan’s economic stability.