Four Parties Shortlisted for PIA Privatization, Auction Date to Be Announced Soon

Islamabad: The Privatization Commission has announced that four parties have been shortlisted for the privatization of Pakistan International Airlines (PIA), with an auction date to be set soon. A total of five parties had shown interest and submitted bids, with the Scrutiny Committee approving four for participation in the auction process.
In a meeting chaired by Farooq Sattar, the National Assembly’s Standing Committee on Privatization discussed several key issues, including the privatization of PIA, the ongoing electricity crisis, and the Pakistan Postal Life Insurance department.
PIA Privatization Update
Secretary of the Privatization Commission, Usman Bajwa, revealed that five parties had expressed interest in PIA’s privatization and submitted applications. After careful scrutiny, four of them have been given the green light to proceed with the auction. These parties will begin reviewing PIA’s accounts and operations starting tomorrow, with a due diligence process to follow. Once completed, the auction date will be announced.
Bajwa further added that the government plans to complete the privatization of PIA by the last quarter of this year. He emphasized that the privatization would only proceed once investors are satisfied with the airline’s financial and operational details. Notably, large business groups in Pakistan have shown interest, and these groups are capable of making the required investment.
In response to a question from Farooq Sattar about the interest of the Punjab government in buying PIA, Bajwa clarified that while the provincial government wanted to start its own airline, it had not expressed interest in PIA’s privatization.
PIA’s CEO also reported that flights to France have now resumed, and Manchester flights are expected to restart soon. The airline’s condition, he noted, has significantly improved compared to last year.
Regarding employees’ job security, Bajwa assured that the privatization process would ensure the protection of PIA workers’ jobs. Additionally, any new buyer would be required to grow PIA’s fleet of 19 aircraft to 45.
Electricity Shortages and Load Shedding
The committee also discussed the ongoing issue of electricity load shedding. The Secretary of the Power Division explained that load shedding is being implemented only in areas where electricity theft is rampant. Farooq Sattar suggested that a letter expressing dissatisfaction with the energy minister, Owais Leghari, be sent, highlighting the darkness under the lamp.
The committee has decided to invite the Secretary of the Power Division to the next meeting to brief them on the current electricity situation.
Postal Life Insurance Claims
Another significant topic was the payment of insurance claims worth Rs. 6 billion by Pakistan Postal Life Insurance. Farooq Sattar pointed out that no representative from Postal Life Insurance had attended the meeting. The Secretary of the Privatization Commission confirmed that the CEO had been invited to attend.
Ministry of Finance officials clarified that the Ministry of Communications has Rs. 3 billion available, which can be used to settle claims. If additional funds are required, the Finance Ministry would provide them.
However, committee member Sahar Kamran raised an objection, stating that the funds belong to the Postal Life Insurance and should not be handed over to the Finance Ministry. Member Saba Sadiq also emphasized that the money belongs to the pensioners, not the government.
Farooq Sattar concluded that the funds should be immediately paid out to the policyholders.
Auction of Bengali Property
In addition, the committee chairman called for the auction of Bengali property, which has been under the control of the Ministry of Finance. Farooq Sattar criticized the ministry for simply collecting rent while neglecting the potential for privatization. He urged the government to take steps toward privatizing these properties.