Government wants new owners to invest Rs. 70 Billion in PIA after buying it.
The federal government wants the new buyer of Pakistan International Airlines (PIA) to invest Rs. 60–70 billion over five years for financial recovery, operational upgrades, and fleet expansion.
Final investment needs will be determined after audited accounts for FY24 are available in mid-August.
Privatization Secretary Usman Bajwa informed the Senate Standing Committee on Privatization that the buyer will retain 85 percent of the bid amount for reinvestment in PIA. The government will receive only 15 percent.
Also read: Can’t sell PIA for cheap, clarifies Privatization Minister Abdul Aleem Khan
The buyer must double the fleet in five years.
In the previous failed privatisation attempt, the minimum investment was set at $300 million.
Advisor to the Prime Minister on Privatisation Muhammad Ali said total investment needs will be finalized once audited financials are reviewed.
The Secretary also said security concerns on North American routes are being addressed.
Also read: Why has PIA banned photos, videography during flights?
Officials confirmed PIA’s previous claim of Rs. 26 billion profit was due to a one-off accounting entry. The actual net loss in FY23 was Rs. 4.6 billion.
The government is offering 51-100 percent shares with management control. Last year, it received a Rs. 10 billion bid against a Rs. 85 billion reserve price.
Due diligence of prequalified companies has begun, with site visits and technical briefings scheduled for next week.
