ISLAMABAD — Pakistan International Airlines (PIA) is expected to change hands by November, with four companies currently in the bidding process, officials told a Senate committee on Monday. Two applicants have already been ruled out for failing to meet the required criteria.
The Privatisation Commission informed the Senate Standing Committee on Privatisation that successful bidders would be required to partner with established international airlines to take over operations of the struggling flag carrier.
Tackling a Massive Debt Load
PIA’s staggering Rs650 billion debt emerged as a key concern during the meeting. Senator Zeeshan Khanzada raised questions about how the liabilities would be handled, prompting Committee Chairman Senator Dr. Afnan Ullah Khan to suggest the sale of PIA-owned hotels abroad to help reduce the burden.
Senator Khanzada also challenged the government’s approach of selling profitable entities first, to which the Privatisation Commission secretary argued that attracting investors often requires offering profitable assets upfront. Even giving them away for free, he said, could be justified if they were unlikely to remain profitable in the future.
Power Companies Next on the Block
The committee also reviewed progress on privatising other state-owned enterprises, including power distribution companies (Discos), generation companies (Gencos), and the Pakistan Minerals Development Corporation. Officials confirmed that both the Nandipur and Guddu power plants are slated for privatisation, but multiple issues remain unresolved.
At Nandipur, eight major hurdles have been cleared, leaving only one dispute over its gas purchase and sale agreement. The government has yet to decide whether the plant will receive a dedicated gas supply or continue with supply based on availability.
Guddu faces similar roadblocks. Four out of nine issues have been addressed, but ownership of the plant’s land remains under Wapda despite a no-objection certificate being issued. The formal transfer process is ongoing.
Senators Demand a Clear Roadmap
Committee members stressed that privatisation efforts cannot succeed without clear strategies for restructuring debt, securing energy supplies, and safeguarding valuable state assets. Senator Afnan Ullah Khan underscored the urgency of addressing these concerns to attract serious buyers and ensure smooth transitions.
If the government sticks to its timeline, PIA’s privatisation would mark a major milestone in Pakistan’s broader effort to overhaul loss-making state-owned enterprises.
