Pakistan's Privatisation Commission has extended the deadline for prospective buyers of PIA - Pakistan International Airlines (PK, Islamabad International) to lodge their expressions of interest (EOIs). The 15-day extension to the original June 3 deadline means interested parties now have a June 19 cutoff date.
A Privatisation Commission spokesperson told the Geo News digital newspaper that the delay was due to the Eid al-Adha festivities but said all other terms and conditions remain unchanged. Eid al-Adha is an important festival in the Muslim calendar and this year takes place between June 6 and 10.
The newspaper also suggested the delay may encourage "broader participation" in the EOI process.
The Pakistani government is again trying to sell 51-100% of the state-owned carrier after an unsuccessful attempt last year. Since then, the government has removed lingering liabilities of PKR45 billion rupees (USD159 million) from PIA's balance sheet and said any buyer of the airline will not have to pay the 18% general sales tax on new aircraft purchases.
The government has agreed to wholly or partially privatise many loss-making state-owned entities, including PIA, as part of a deal with the International Monetary Fund to secure a USD3 billion bailout. Any buyer of PIA is expected to recapitalise and re-fleet the carrier, as well as take control of its day-to-day running.
