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Govt Extends PIA Privatisation Deadline Amid Renewed Interest and Rare Profit Report
Govt extends deadline for PIA privatisation bids to June 13. After a $4.3M failed attempt, fresh expressions of interest are due by 4pm on June 19. PIA posts first profit in 21 years with Rs2.26bn net gain in FY2024.
ND
by News Desk
2025-05-27
Govt Extends PIA Privatisation Deadline Amid Renewed Interest and Rare Profit Report

The federal government on Tuesday extended the deadline for expressions of interest (EOIs) in the privatisation of Pakistan International Airlines (PIA) to June 13, 2025, the Ministry of Privatisation announced in an official statement. The final deadline for submission of EOIs is now set at 4:00 PM on June 19.

This extension comes as part of the government's second attempt to privatise the national flag carrier, following a failed bid that reportedly cost the national exchequer $4.3 million, as disclosed to the National Assembly Standing Committee on Privatisation on February 26.

Earlier in March, Federal Minister for Privatisation and Investment Abdul Aleem Khan had expressed commitment to finalising the PIA privatisation process by May. The privatisation commission subsequently approved a transaction structure allowing for the divestment of between 51% to 100% of PIA’s share capital.

Originally, the deadline for EOIs was set for June 3, with the bidding process scheduled to take place between October and December this year.

In a positive development for potential investors, PIA recently reported a net profit for the first time in over two decades. The airline's Board of Directors approved the financial results for FY2024, showing an operational profit of Rs3.9 billion and a net profit of Rs2.26 billion. According to the airline, its operating margin exceeded 12%, placing it on par with some of the world’s top-performing airlines.

PIA has long struggled with financial losses, having become unprofitable in 2011 and heavily reliant on government bailouts. By the end of 2016, it had accumulated $3 billion in debt, which grew to $3.3 billion by the close of 2018.

In June 2023, the government had pledged to restructure state-owned enterprises, including PIA, as part of a $3 billion bailout agreement with the International Monetary Fund (IMF). However, in February 2024, ahead of the general elections, the Election Commission of Pakistan instructed the caretaker government to halt privatisation decisions until a new government was in place.

With the current administration pushing forward and the airline showing signs of a financial turnaround, the coming months may prove pivotal for the future of PIA.
Tagged:

PIA

PakistanEconomy

Privatisation

PakistanAirlines
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