Govt Plans to Retain PIA Stake Even After Selling It to Highest Bidder

The federal government plans to retain a stake in Pakistan International Airlines (PIA) after selling the airline to the highest bidder, Bloomberg reported. The government wants to share in the profits following a potential increase in the value of the airline post-sale. Secretary Privatisation Commission Usman Bajwa said the final bidding date would be announced in 10 days. The government intends to sell at least a 51 percent stake in PIA. The national flag carrier has failed to make a profit in nearly two decades. The current privatization plan aims to change this and further push the country towards a new loan arrangement with the International Monetary Fund. Previous efforts to sell the airline were unsuccessful. According to the Ministry of Privatization, authorities aim to sell ten entities including power distribution companies within a year. It is also seeking initial bids for PIA’s Roosevelt Hotel in New York. Last month, Pakistan shortlisted six groups for the PIA sale. Among them are tycoon Arif Habib and a consortium led by the Yunus Brothers Group. Another consortium includes Switzerland’s Swiss Aviation Group AG, Austria’s Airport Competence GmbH, and Australia’s Pearl Asset Management.