The Privatization Commission has announced a one-month extension for the auction of Pakistan International Airlines (PIA). The bidding date has now been moved to October 31.
This extension gives interested parties additional time to participate in the process
According to the commission, the deadline for signing the draft agreement has also been extended to October 25. Furthermore, prospective bidders can now deposit the advance money required for participation until October 28. Previously, the deadline for the advance payment was set for September 27.
Last week, the secretary of the Privatisation Commission had told the Standing Committee on Privatization of the National Assembly, chaired by Farooq Sattar, that the PIA privatisation process commenced in November 2023 and had now reached its concluding stages, with investor preparations for bidding nearly complete.
Also Read: Major transformation coming to PIA—bidding process revealed!
He had stressed that the successful bidder will be required to invest between Rs65 to 70 billion and increase PIA’s fleet from 18 to 45 aircraft within a span of three years. The secretary further clarified that while the PIA's existing staff will be retained for two to three years, any changes to the airline's routes will necessitate government approval.
These stipulations are integral to the agreement that will be established with the winning bidder, and discussions are ongoing regarding the lifting of a European ban on PIA, with steps being taken to facilitate the resumption of flights to Europe.
Committee member Sahar Kamran had urged that the draft agreement be presented to the committee for review. The secretary confirmed that the draft has been shared with investors and is pending cabinet approval.
Also Read: PIA Privatization Bid: 6 Companies to Compete on October 1
Addressing the issue of pensions for retired PIA employees, the secretary had noted that the total pension liability amounts to Rs35 billion. The government would assume responsibility for paying pensions to retired employees, having already injected 800 billion rupees into PIA to alleviate its debt burden, which now stands at zero.
The Chief Executive Officer of PIA assured the committee that the airline's safety standards are currently at the highest international levels, with hopes to resume flights to the UK in the near future. He indicated that the new investors would need to recruit additional cabin crew and IT staff.
Chairman Sattar expressed his satisfaction with the expedited privatization process of PIA compared to other institutions. He stressed the importance of safeguarding employee rights during the transition, ensuring there will be no reductions in salaries and allowances for PIA employees.
