ISLAMABAD: The federal government has officially extended the deadline for expressions of interest (EOIs) in the privatisation of Pakistan International Airlines (PIA) to June 19, 2025, the Ministry of Privatisation announced on Tuesday.
The extension offers potential investors more time to participate in the bidding process for a stake in the national flag carrier, with the bidding phase anticipated to occur between October and December.
The privatisation of PIA — a financially troubled state-owned enterprise for over a decade — is a major component of the government’s broader economic reform agenda, particularly under commitments made to the International Monetary Fund (IMF).
Second Attempt After Costly First Failure
This marks the second attempt to privatise the airline after the first round failed, reportedly costing the national exchequer $4.3 million, as disclosed to the National Assembly Standing Committee on Privatisation in February. In March, Federal Minister for Privatisation Abdul Aleem Khan had said that all necessary steps to privatise PIA would be completed by May.
The transaction structure approved involves divesting 51% to 100% of PIA’s capital shares.
Initially, the deadline for EOIs was June 3, but the ministry has now moved it to 4:00 PM on June 19, allowing additional time for interested investors and consortia to prepare their proposals.
Financial Turnaround After Years of Losses
Encouragingly, last month PIA announced a net profit for the first time in 21 years, showing signs of recovery ahead of the planned privatisation.
According to the airline’s FY2024 results, it posted an operational profit of Rs3.9 billion and a net profit of Rs2.26 billion, with an operating margin exceeding 12% — figures touted by the airline as comparable with top international carriers.
The turnaround is significant given PIA’s history of heavy financial losses and dependency on government bailouts. By 2018, the airline had accumulated $3.3 billion in debt, and from 2011 onward had operated consistently at a loss.
PIA’s inclusion in the IMF-backed reforms agreed last year reflects the pressure on Pakistan to shed unprofitable state-owned entities.
However, political hurdles — including a February 2024 directive by the Election Commission to halt major decisions during the election period — delayed the process.
Now, with new momentum and a profit on the books, the government is keen to complete the long-awaited sale and potentially usher in a new chapter for the airline.
