Pakistan tackles concerns by bidders over airline safety ban

The privatisation of the loss-making state-owned enterprise has long been on the International Monetary Fund's list of recommendations for Pakistan

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By Reuters

Published: Wed 3 Jul 2024, 9:08 PM

Pakistani authorities began meeting those qualified to bid for the country's national airline on Wednesday, to address concerns including a European Union Aviation Safety Agency (EASA) ban on the carrier, officials said.

The privatisation of the loss-making state-owned enterprise has long been on the International Monetary Fund's list of recommendations for Pakistan, which is seeking to strike a deal with the fund for a longer term bailout this month.

Islamabad allowed six companies and consortiums in June to take part in bidding for between 51 per cent-100 per cent of Pakistan International Airlines as early as the end of next month.

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The EU safety ban was one of the main concerns the bidders have raised, Privatisation Commission secretary Usman Bajwa told a media briefing along with Privatisation Minister Abdul Aleem Khan.

The minister wouldn't disclose how much the government was expecting to raise but said the bidders were showing keen interest because the airline was profitable barring its legacy debt and liabilities.

"I've no clue what money it will get," he said. "Anyone who puts in money ... who buys PIA will be in profit from the very first day."

EASA banned the airline from its most lucrative routes in Europe and Britain after a PIA plane crash in Karachi in 2020 killed nearly 100, followed by a scandal over pilot licences.

Separately, the PIA owned Roosevelt hotel in Manhattan is being sold along with other government assets including House Building Finance Company and First Woman bank, as part of the wider privatisation drive, Bajwa said.

He said real estate investment management services firm, JLL is advising on a potential sale, joint venture or lease of the property and the government is hoping to decide what route to take by August.

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Reuters

Published: Wed 3 Jul 2024, 9:08 PM

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