TRADE & ECONOMY

PIA Receives Rs10 Billion Bid from Blue World City Amid Privatization Efforts

Pakistan International Airlines (PIA) received a Rs10 billion bid from Blue World City as the government seeks to offload a 51-100% stake in the debt-laden national carrier. Will this step pave the way for PIA’s transformation, or is the road ahead still uncertain
2024-10-31
PIA Receives Rs10 Billion Bid from Blue World City Amid Privatization Efforts

Pakistan International Airlines (PIA) received a bid worth Rs10 billion from real-estate development company Blue World City in the ongoing privatization process, confirmed the Privatisation Ministry on Thursday. The government has aimed to raise funds and reform debt-ridden state-owned enterprises through privatization, with PIA’s minimum set at Rs85 billion.

While six groups were pre-qualified, only Blue World City submitted the final documents, meeting the government’s Tuesday deadline. According to officials from other potential bidders, concerns over policy continuity, long-term contractual commitments, and changes to sovereign agreements raised risks, deterring broader interest.

With looming potential layoffs and restructuring, privatizing PIA remains a sensitive move, and political shifts may further complicate this process. Concerns over policy consistency have already impacted the government’s approach to agreements with private power companies, further adding to investor concerns