Bidding process for PIA privatisation set to take place shortly with one potential buyer in limelight

Bidding for the privatisation of flag carrier Pakistan International Airlines (PIA) will be held today (Thursday) at the Serena Hotel, Islamabad, a statement from the Privatisation Commission said on Thursday, with one bidder – real estate group Blue World City – in the limelight.

The bids were to be submitted at 1:30pm and reports suggest Blue World City was the only group to submit a bid.

The bid is due to be opened at 6:30pm.

The entire privatisation process will also strictly adhere to regulatory guidelines and legal requirements, reported Business Recorder earlier.

However, new conditions from potential buyers have surfaced, particularly, concerning the airline’s employees.

A total of six groups had been shortlisted to bid for shares in PIA including Airblue Ltd., Arif Habib Corporation Ltd., Air Arabia’s Fly Jinnah, Y.B. Holdings Pvt., Pak Ethanol Pvt. and real estate consortium Blue World City.

However, Bloomberg on Tuesday reported that the government received interest from only one group out of a total of six for a stake in the national carrier as other consortiums stayed away from one of the country’s major privatisation attempts.

It was confirmed on Wednesday that Blue World City, a Pakistani real estate development company, was the sole bidder for a stake in the country’s flag carrier.

Saad Nazir, Chairman of Blue World City, confirmed to Reuters in a text message that his company is the only one to enter the final bidding process, though he declined to disclose the earnest money it had submitted.

Pakistan aims to privatise flag carrier PIA in November: finance minister

Blue World City has a consortium that includes Blue World Aviation and IRIS Communication Limited. The group is also looking into acquiring operations of the Islamabad International Airport which the government is looking to outsource.

Islamabad has previously said it was putting on the block a stake of between 51% and 100% in the debt-ridden airline as part of reforms urged by the International Monetary Fund (IMF) with which it has an ongoing 37-month, $7-billion bailout.

However, after much delay, during a time when potential bidders raised several concerns over various features of the privatisation, the process will take place amid strict scrutiny.