PIA Fails to Attract Suitable Buyer As Sale Deadline Approaches

The privatization of Pakistan International Airlines (PIA) has failed to attract foreign companies to buy majority shares in the company. Only two firms from the Gulf showed initial interest and deposited $5,000 for investment documents. However, they have yet to submit their tender applications, despite the deadline for tender requests being May 3. Due to below-par response from potential investors in the initial round, the deadline for tender submissions may be extended by a month. Privatization officials and PIA’s financial advisors are struggling to attract foreign investment. Despite roadshows and related efforts, the response has been disappointing. Authorities reportedly aim to pocket $250-300 million from the PIA sale. The process, part of reforms backed by the International Monetary Fund, aims to sign a share price deal by June 24. Being the largest player in Pakistan’s aviation industry, PIA faces challenges including competition from Middle Eastern carriers due to a lack of direct flights to key destinations.