PIA delays final bidding by two months

July 23, 2024 (MLN): Pakistan has delayed the final auction for state-owned Pakistan International Airlines by two months until the end of September after potential bidders sought more information to assess the carrier, Bloomberg reported, citing people familiar with the matter.

The bidders are waiting for the airline’s latest audited accounts, clarity on flights to Europe that are banned, and aircraft lease agreements, Bloomberg cited the people as saying, who requested not to be named as the matter is private.

Pakistan’s privatization ministry didn’t respond to a request for comment.

The government said earlier this month that it will announce the final bid date in 10 days. Pakistan wanted to announce the deal on its independence day, August 14. That date will not be met now.

The stake sale in the airline is part of the government’s commitment to undertake economic reforms in exchange for a bailout from the International Monetary Fund.

Pakistan is looking to sell 51% to 100% of the carrier, which hasn’t reported annual profit for nearly two decades.

Pakistan selected six groups to bid for the airline in June. These include a consortium led by the Yunus Brothers Group., one of the nation’s largest business conglomerates, and another bid by businessman Arif Habib. Pak Ethanol Pvt.’s consortium includes local airline Serene Air, Liberty Power and is advised by House of Finance.

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