Minister for Privatization Abdul Aleem Khan on Monday informed the National Assembly that 24 state-owned enterprises, including the Pakistan International Airlines (PIA) would be privatized.
During the question hour in the House, the mister said that the PIA’s losses have reached Rs 830 billion.
He assured the House that PIA’s properties will not be sold; instead, a holding company will be established for these assets.
Abdul Aleem said that the all the codal formalities for the privatization of the PIA have been approved by the federal cabinet and the relevant institutions.
The minister said the Securities and Exchange Commission of Pakistan (SECP) has also granted approval in May 2024, adding that Privatization Commission has received twelve interests from investors including airlines in PIA, and the Privatization Commission board reviewed the matter on June 3.
The minister said the companies’ prequalification has been approved, and bidding is planned for August.
He said that out of PIA’s fleet of 34 aircraft, 13 are grounded, and only 20 to 21 are operational, adding that no employees would need to be laid off, and any airline taking control of PIA would utilize the existing staff.
The minister said the PIA’s privatization would follow a 49-51 percent model under a public-private partnership, with the government will hold 49 percent share.
He said no foreign company can purchase a 51 percent share, which is being sold to grant administrative control.
Abdul Aleem reiterated that PIA?s properties, including the Roosevelt Hotel, will not be sold.
