ISLAMABAD: The Pakistani government has extended the deadline for submitting Expressions of Interest (EoI) in the privatisation of Pakistan International Airlines Corporation Limited (PIACL) by 15 days, moving it from June 3 to June 19. The decision aims to allow prospective investors more time to prepare their bids for one of the country’s most high-profile divestment initiatives in years.
A senior Privatisation Commission official confirmed the extension, stating that all other terms of the acquisition remain unchanged. The government is offering a 51% to 100% equity stake in the national carrier, along with full management control. The official cited Eid ul Adha as the reason for the extension, ensuring potential bidders—including foreign investors—have sufficient time to finalise their proposals.
The privatisation of loss-making PIA is a key part of Pakistan’s efforts to reduce its fiscal deficit, reform inefficient state-owned enterprises, and attract foreign investment. The move aligns with the government’s commitments under the International Monetary Fund’s (IMF) Extended Fund Facility (EFF), which mandates structural reforms, including the privatisation of struggling public-sector entities.
Analysts say the success of PIA’s privatisation will be a crucial test for Pakistan’s economic reform agenda. The airline has faced years of financial losses, mismanagement, and operational challenges. If successful, the sale could set a precedent for future privatisations, helping the government stabilise public finances and improve service delivery in key sectors. However, the process remains sensitive, with potential hurdles including labour union resistance and investor concerns over legacy liabilities.