Pakistan: , Punjab Information Minister Azma Bokhari stated that the provincial government had “no intentions” of participating in Pakistan International Airlines’ (PIA) highly publicized bidding process.
The Khyber Pakhtunkhwa government said on Friday that it was ready to buy the losing national flag carrier after the failed attempt to sell it last week.
A day later, Nawaz Sharif, a former prime minister, stated that his daughter, Punjab Chief Minister Maryam Nawaz, had sought his advice regarding whether the provincial government should acquire the PIA or establish a new airline.
Nawaz suggested that the airline could also be purchased and rebranded by the provincial government as Air Punjab, stating that he had advised Maryam to “proceed with further consultations on the potential acquisition of the PIA.”
On the other hand, Privatization Minister Abdul Aleem Khan made hints on Sunday that the national flag carrier might be sold to a private buyer with no obligations.
In order to clear the Rs200 billion in debts and “sell a clean PIA” to a private buyer, Khan suggested that the government might create a new framework.
Bokhari clarified this today in an interview with the media in Lahore: The assertions that the Punjab government intends to purchase PIA are patently false.”
She explained that Nawaz was addressing a group of PML-N businesspeople in the United States who had expressed concern about difficulties in returning from Pakistan.
She said that party leaders told Nawaz, “There are no direct flights available,” and added that the PIA’s current “condition” was obvious.
Bokhari claims that the former premier stated that when the plan to privatize the company was announced, the subject of acquiring the national flag carrier did come up.
The information minister made her point: “But he did not say at any point that we are going to buy it.”
She repeated, “And I would like to declare categorically that the Punjab government has no intention to buy PIA.”
She did, however, point out that “any provincial government can launch an airline of their own” if the provinces had the financial means to do so. Bokhari went on to say that while it was not the government’s responsibility to run businesses, it was its responsibility to provide favorable conditions for them.
In order to raise funds and reform state-owned businesses in accordance with a $7 billion International Monetary Fund (IMF) program, Pakistan has sought to offload a 51-100 percent stake in the debt-ridden PIA.
Initially, the government intended to privatize the airline by June, but subsequent delays extended the deadline until October.
Six organizations had been prequalified by the government, but Blue World City, a real estate development company, was the only one to participate in the bidding process last week.
It offered Rs10 billion for a 60 percent stake, which was significantly less than the government’s minimum price of Rs85 billion.
After that, the much-anticipated privatization process was put on hold because real estate development company Blue World City kept the same price despite being given time to reevaluate its offer.
