Pakistan has granted prospective investors more time to prepare their bids for the privatisation of Pakistan International Airlines Corporation Limited (PIACL), extending the deadline for submitting Expressions of Interest (EoI) until June 19.
This 15-day extension from the original June 3 deadline aims to facilitate broader participation in one of the nation’s most significant divestment initiatives in recent memory.
A senior official from the Privatisation Commission confirmed the extension to The News, stating that all other terms and conditions for the acquisition remain unchanged.
The government is offering a controlling stake, ranging from 51% to 100% equity in PIACL, alongside full management control.
When asked about the reason for the extension, the official said it was due to Eid ul Adha.
This move comes as the government pushes ahead with plans to privatise the loss-making national carrier in a bid to cut the fiscal deficit, fix inefficient state-run enterprises, and attract foreign investment.
The process is part of reforms agreed with the International Monetary Fund (IMF) under the Extended Fund Facility (EFF).
To make the deal more attractive, Islamabad has introduced new incentives, including GST exemptions on new aircraft and shifting PIA’s debt off its balance sheet.
These changes aim to present PIA with a “net-zero balance sheet” to potential buyers. A revised price benchmark for the deal may also be set soon.
The current plan offers a simplified and cleaner transaction compared to an earlier failed attempt, which offered 60% of shares with an optional 15% top-up. Back then, PIA’s negative equity of Rs45 billion and 18% GST on aircraft were key roadblocks.
With the IMF’s approval, those liabilities are now absorbed by the government, making the deal more appealing. EY Consulting LLC is advising the Privatisation Commission on the sale. The government hopes to wrap up the process within the current calendar year.
