The Pakistani government is intensifying efforts to privatise Pakistan International Airlines (PIA). It aims to complete the process through government-to-government (G2G) deals by December 31, according to a reports.
Abu Dhabi and Qatar Show Interest
Notably, Abu Dhabi and Qatar have shown strong interest in acquiring stakes in PIA. Discussions are currently underway with both nations to finalise the terms of the agreement.
SECP Provides Investor Incentives
To attract buyers, the Securities and Exchange Commission of Pakistan (SECP) is offering substantial incentives. These measures, therefore, aim to ease the transition and provide support to potential investors during the privatisation process.
European Routes Revive Revenue
Meanwhile, the reopening of European routes has significantly boosted PIA’s revenue. This step, in turn, has strengthened the airline’s financial stability.
Additionally, PIA has resumed smooth operations to the UK after receiving clearance from the European Union Aviation Safety Agency (EASA). This approval now allows the airline to operate direct flights to London and Manchester, further improving its connectivity.
Strategic Fleet Expansion
To enhance its operations, PIA plans to deploy four Boeing 777 aircraft on its European and UK routes. Consequently, this move is expected to boost its international market presence and accelerate financial recovery.
Reducing Losses and Improving Finances
Furthermore, the addition of new aircraft and expanded routes is likely to reduce PIA’s annual losses. These efforts are projected to improve the airline’s financial health in the long term.
Government’s Renewed Commitment
As part of its strategy, the government is prioritising PIA’s privatisation while also focusing on expanding its global network. This dual approach reflects its commitment to reviving the national carrier.
Delays and Updated Timeline
Earlier, Finance Minister Muhammad Aurangzeb confirmed that the government plans to privatise PIA and three power distribution companies by the end of the year. However, the process faced delays due to low bidder interest, legal challenges, and issues with PIA’s ageing fleet. Initially set to conclude by October 1, the deadline was extended to October 31 and later shifted to December 31.
The government remains determined to complete the privatisation process while also improving PIA’s operational efficiency and financial stability.
