KARACHI: The privatisation process of state-owned Pakistan International Airlines (PIA) has been delayed as majority of the potential bidders sought an extension, it was learnt on Monday.

A new bidding date of October 1 has been suggested, sources familiar with the matter told Business Recorder.

The sources added that potential bidders were concerned over the ban on PIA’s flights to Europe, delay in sharing audited accounts along with the draft of the shareholding agreement. It had earlier been suggested that the government wanted to finalise the deal by August 14.

PIA bidding process to take place in first week of August

Six companies/ consortiums including Air Blue, Arif Habib Corporation, Blue World City, Fly Jinnah, Pak Ethanol Consortium, and YB Holdings Consortium, have been pre-qualified in the process of PIA privatisation.

The Privatisation Commission did not respond to a query by Business Recorder on the new schedule.

Finance Minister Muhammad Aurangzeb had earlier expressed hope that PIA’s privatisation would be finalised by July.

Pakistan’s government had previously said it was putting on the block a stake of between 51% and 100% in the loss-making airline as part of reforms urged by the International Monetary Fund (IMF).

Copyright Business Recorder, 2024