PIA Bidding Today: 75% Airline to Be Sold, Buyer to Commit Rs. 80 Billion

The Privatization Commission will move forward with the sale of Pakistan International Airlines (PIA) by opening the bidding process for a 75 percent stake in the airline. The Privatization Commission will oversee the process, starting by first approving the reserve price for the airline. Final approval of the reserve price will be sought from the Cabinet Committee on Privatization. Pre-qualified bidder groups are mandated to submit their bids between 10:45 am and 11:15 am, with the bids set to be opened at 3:30 pm in the presence of the media. If the highest bid exceeds the reserve price, it will be accepted immediately. In case bids fall below the reserve price, the highest bidder will be given a chance to match the price. Under the privatization terms, the successful bidder will have 90 days to acquire the remaining 25 percent of PIA shares. Of the proceeds from the 75 percent stake sale, 92.5 percent will be reinvested into PIA, while the remaining 7.5 percent will be transferred to the federal government. The government has assured that PIA employees will receive job security for one year following privatization. Pension and post-retirement benefits will be the responsibility of the new holding company. Potential investors are required to inject Rs. 80 billion into the airline over the next five years to modernize and expand its operations.