Pakistan's Privatisation Commission is inviting expressions of interest (EOIs) from parties interested in acquiring between 51% and 100% of PIA - Pakistan International Airlines (PK, Islamabad International). The commission, a Ministry of Finance agency, issued the call on April 24, 2025. It is the second time in under 12 months that the government has attempted to privatise the flag carrier.
Eligible bidders, including companies, firms, body corporates, and other legal entities, must submit their EOIs by 1600L (1100Z) on June 3 accompanied by a non-refundable processing fee of PKR1.4 million rupees (USD4,975).
An attempt in 2024 to privatise PIA failed after a delayed auction attracted only one bid of PRK10 billion (USD35.5 million) for a 60% stake. The offer was significantly below the government's valuation of PKR85.03 billion (USD302 million) and was ultimately rejected. The offers "must be respectable," the government said at the time.
Since then the government has removed PKR45 billion (USD160 million) in liabilities from PIA's balance sheet and granted a general sales tax exemption for new aircraft acquisitions. Both factors deterred potential bidders last year.
The new privatisation campaign includes PIA's major business units, including passenger services, ground handling, cargo operations, flight training, flight catering, and engineering services. The government wants the buyer to overhaul the carrier, refresh the fleet, and stem the series of financial losses.
The Privatisation Commission has also revised its pre-qualification criteria, aiming to screen out speculative bids and ensure only parties with the financial and technical resources to operate an airline are shortlisted. The government hopes to complete the process by the end of 2025.
