Islamabad, October 31, 2024-Pakistan International Airlines (PIA) received a lone bid of Rs10 billion ($35 million) from Blue World City, a real estate developer, for a 60% stake in the airline, significantly below the government’s minimum price of Rs85 billion ($293 million). The bid comes amid Pakistan’s efforts to sell a 51–100% stake in PIA to generate funds and address its economic challenges, as outlined in a $7 billion IMF reform program.
While six groups were pre-qualified for the privatization bid, only Blue World City entered the final round, surprising analysts given the minimum price set. The Privatisation Commission has requested the bidder to match the government’s valuation. However, Blue World City’s chairman, Saad Nazir, reiterated their initial offer, stating, “We wish the government all the best if they don’t want to accept our bid.”
Other groups expressed reservations about the stability of government agreements, citing the recent termination of power purchase contracts and ongoing renegotiations with private companies, which they fear could signal a lack of long-term policy consistency. Such factors, alongside high taxes, complex terms, and PIA’s legacy issues, reportedly deterred bidders, raising broader concerns over Pakistan’s investment climate.
PIA’s privatization has long been avoided by past governments due to concerns over potential layoffs. The government has yet to comment on the issues raised, particularly as political uncertainties continue in the lead-up to elections.
