BIG jolt to Pak as nation’s biggest carrier Pakistan International Airlines’ crisis looms after major bidder exits close to deadline
Officials said the airline, which operates flights to 78 destinations and has approximately 170 international landing slots, urgently needs new investments and professional management to revitalize its operations.
Pakistan International Airlines (PIA) has faced a significant setback in its privatization drive after Fauji Fertilizer Company Ltd officially withdrew from the tender for a 75 per cent stake in the country’s national carrier just before the sealed bid deadline.
According to Geo News, citing a report by The News, Privatization Commission officials said Fauji Fertilizer failed to deposit the required earnest money on Saturday, the deadline, and informed the commission of its decision to withdraw. With the launch, three pre-qualified bidders will remain in the race and submit sealed bids until December 23. The remaining bidders include Airblue (Pvt) Ltd; A consortium led by Lucky Cement, Hub Power Holdings, Kohat Cement and Metro Ventures; Another consortium led by Arif Habib Corporation, which includes Fatima Fertiliser, City Schools, Lake City Holdings and AKD Group Holdings, Geo News reported.
Officials said Fauji Fertiliser’s withdrawal gave him the potential to join a successful consortium at a later stage, an option that would not have been available had he formally submitted a bid. Under the privatization plan, bids are invited for 75 percent stake in PIA and the winning bidder is given a 90-day option to buy the remaining 25 percent stake held by the government, Geo News reported.
The tender process will begin with sealed bids, after which the bids will be opened to the public after the reserve price is approved by the Privatization Commission Board and the Cabinet Privatization Committee. The government will provide one-year job security to PIA employees, while the holding company will manage pension and post-retirement liabilities. Officials said the airline, which operates flights to 78 destinations and has approximately 170 international landing slots, urgently needs new investments and professional management to revitalize its operations.
(Except the headline, the story has not been edited by DNA staff but is published directly from ANI)
