Pakistan’s bid to privatize its struggling national airline, Pakistan International Airlines (PIA), faced a significant setback when the sole bidder, Blue World City, a real-estate development firm, offered a mere PKR 10 billion (₹30.25 crore) for a 60% stake. This offer fell drastically short of the government’s minimum expectation of PKR 85 billion, established by the administration under former Prime Minister Shehbaz Sharif, according to a PTI report.
The bidding event, held at an upscale hotel in Islamabad and broadcast live on PTV, underscored the government’s urgency to sell off loss-making state enterprises, a condition tied to Pakistan’s recent $7 billion agreement with the International Monetary Fund (IMF). Despite six entities being shortlisted for the sale back in June, only Blue World City proceeded to the final bidding stage.
The Privatisation Commission has since asked the bidder to raise its offer to meet the minimum price. However, Saad Nazir, Chairman of Blue World City, responded with a lukewarm endorsement, stating, “We wish the government all the best if they don’t want to accept our bid.” Nazir hinted at potential interest from Chinese and Turkish investors with aviation experience, should the bid move forward.
Pakistan’s government had aimed to sell between 51% and 100% of its stake in PIA, which has been burdened with mounting debt and operational inefficiencies. The airline’s assets, including aircraft and operational routes, are valued at approximately PKR 152 billion. However, its workforce—over 7,100 employees, including around 2,400 daily-wage workers—presents a considerable challenge for potential investors, many of whom would need to commit significant resources to turn PIA profitable.
Complicating the matter further, PIA has faced ongoing challenges such as a European Union ban imposed in 2020, after it was revealed that several pilots held counterfeit licenses, barring the airline from European airspace. Combined with a rapidly aging fleet and a history of financial losses, PIA’s sale appears increasingly uncertain, underscoring the broader challenges Pakistan faces in overhauling state-owned enterprises amidst fiscal pressures.
