Govt extends deadline for bids on Pakistan's national airline

May 03, 2024 (MLN): The Privatisation Commission Board on Thursday approved an extension of the date for submission of interests for the divestment of Pakistan International Airlines Corporation Limited (PIACL), according to a press statement released yesterday.

The approval was granted in the 218th meeting of the board that convened under the chairmanship of the Federal Minister for Privatisation, Investment and Communication, Abdul Aleem Khan at the Privatisation Commission, Islamabad.

The Board also considered the recommendations of all the Ministries of the Federal Government for the Privatisation Programme (2024-29) and approved their submission to the Cabinet Committee on Privatisation (CCoP) with its observations.

Approval was also given to the proposed amendments in PC (Hiring of Financial Adviser), Regulations, 2018.

The Board accorded approval for an extension in the date for submission of interests on the request of interested parties.

Ten entities have already shown their interest in the acquisition of PIACL shares. The invitation for expression of interest in acquiring the majority stakes in PIACL was advertised both locally and internationally on April 2 and 3, 2024.

The Board considered the recommendations of all Federal Ministries for the Privatisation Programme 2024-29 and discussed in detail the various issues associated with the privatization programme.

A total of twentyone (21) entities have been recommended by the ministries for inclusion in the privatization list out of which 15 entities are already in the active list.

The six new suggestions for the privatization list include Postal Life Insurance Company Limited (PLICL), Zarai Taraqiati Bank Ltd., Utility Stores Corporation (USC), Jamshoro Power Company Limited (GENCO-I), Lakhra Power Generation Company Limited (GENCO-IV) and Hazara Electric Supply Company (HAZECO).

The board observed that the Ministries had described many SOEs as strategic and essential but the decision in this regard can only be taken by CCoSOE.

It further directed that the Ministries shall place their recommendations before CCoSOE and the entities not deemed strategic or essential may then be placed on privatization list. 

The Board approved the proposed amendment in the PC (Hiring of Financial Adviser), Regulations, 2018, to enable the Privatisation Commission to prequalify financial advisors so that the time required for appointment of Financial Advisors for transactions can be reduced further.

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