PIA auction deadline extended to October 31

The Privatization Commission has announced a one-month extension for the auction of Pakistan International Airlines (PIA), with the new bidding deadline set for October 31. This extension provides additional time for interested bidders to prepare and participate in the process.

In addition to the auction date, the commission has extended the deadline for signing the draft agreement to October 25. Prospective bidders are also now allowed to deposit the required advance payment until October 28, instead of the original September 27 deadline.

During a recent meeting with the National Assembly’s Standing Committee on Privatization, the commission’s secretary reported that the PIA privatization process, which began in November 2023, is nearing its final stages.

He emphasized that the successful bidder must invest between Rs65 to 70 billion and increase PIA’s fleet from 18 to 45 aircraft within three years. Additionally, any changes to PIA’s flight routes will require government approval, and the airline’s staff will be retained for two to three years.

The draft agreement has already been shared with potential investors and is awaiting cabinet approval. Discussions are also ongoing to lift the European ban on PIA flights.

The government has pledged to handle PIA’s Rs35 billion pension liabilities, having already provided an injection of Rs800 billion to address the airline’s debts.

The PIA CEO assured the committee that safety standards are at their highest level, with plans to resume flights to the UK soon. Furthermore, the successful bidder will need to hire more cabin crew and IT staff as part of the airline’s expansion.

Chairman Farooq Sattar praised the progress of PIA’s privatization and emphasized protecting employee rights during the transition.

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