Following a lack of investor interest in the initial round, the federal government has decided to relaunch the bidding process for the privatization of the national flag carrier, Pakistan International Airlines (PIA).

According to Daily Jang report, the announcement came during a Senate Standing Committee on Privatization meeting, chaired by Senator Talal Chaudhry.

Federal Minister for Privatization Abdul Aleem Khan provided a detailed briefing on the challenges and prospects of PIA’s privatization, highlighting PIA’s staggering Rs 830 billion loss in total, while noted that there was a deficit of Rs 45 billion at the privatization process, initiated in November 2023, saw limited engagement from potential investors.

Aleem Khan stressed that the necessity of removing barriers such as the General Sales Tax (GST) on aircraft purchases, a practice not followed globally.

He cited examples of other countries, including India, where Air India’s privatization succeeded after multiple failed attempts.

“The government must act decisively to address PIA’s losses before privatization. With strategic reforms, PIA has the potential to become profitable,” said Khan.

The Secretary of the Privatization Commission added that the revised bidding process will be expedited, while ongoing discussions with the International Monetary Fund (IMF) and other stakeholders aim to resolve issues, including tax waivers sought by investors.

The committee also discussed the privatization of power distribution companies (DISCOs), with a World Bank report expected to guide the process.

Despite the challenges, government officials remain optimistic, viewing PIA’s re-privatization as a crucial step toward reducing fiscal losses and improving operational efficiency.