April 18, 2025 (MLN): The government of Pakistan will invite expressions of interest (EOIs) next week for the sale of Pakistan International Airlines (PIA), the Privatisation Ministry revealed, just days after the national flag carrier reported its first annual profit in over two decades.
The government is seeking to sell a 51-100% stake in the debt-laden airline in an effort to raise funds and reform loss-making state-owned enterprises (SOEs), in line with the conditions of a $7 billion programme agreed with the International Monetary Fund (IMF).
Last year’s privatisation attempt failed after PIA received only one bid, which was significantly lower than the asking price of over $300 million.
The Privatisation Commission board has now approved the initiation of a new bidding process, as per the press release.
“The board approved the pre-qualification criteria for selection of prospective bidders,” the ministry said in a statement, adding that fresh EOIs will be sought next week for acquiring between 51% and 100% of the airline.
In response to concerns raised by potential buyers during the previous process, the government has moved nearly all of PIA’s legacy debt to its own balance sheet.
Muhammad Ali, the government’s adviser on privatisation, stated last week that all issues highlighted during the failed attempt in 2023 have been resolved.
PIA returned to profitability after 21 years, posting a net profit of Rs26.2bn for the year 2024.
The airline also recorded an operational profit of Rs9.3bn for the same period, according to a press release.
The last time the airline reported a profit was in 2003, after which it remained in losses for two decades.
Meanwhile, PIA has announced the launch of a direct flight route from Lahore to Baku starting on the 20th of this month.
