In a recent meeting of the National Assembly’s Standing Committee on Privatization, it was announced that the bidding process for the privatization of Pakistan International Airlines (PIA) will take place on October 1, with final approval from the federal cabinet.
The meeting, chaired by Farooq Sattar, focused on the matters concerning the privatization of PIA. The Secretary of the Privatization Commission provided a briefing, stating that the privatization process for PIA, which began in November 2023, is now complete, and investors are in the final stages of preparation for the bidding.
He mentioned that the successful bidder would need to invest between 65 to 70 billion rupees immediately upon acquisition, and within three years, the airline’s fleet must be expanded from 18 to 45 aircraft.
Furthermore, the Secretary indicated that PIA’s existing employees would be retained for two to three years, and the airline’s routes would be maintained. Any closure of routes would require government approval.
These conditions will be part of the agreement with the successful bidder. Discussions are ongoing to lift European Union restrictions, and the government is taking steps to restore flights to Europe.
The Secretary noted that bidders are aware of these terms, and any breach of contract by the purchasing company will result in legal action.
Committee member Sahar Kamran requested that the draft agreement be presented to the committee. The Secretary replied that the draft has been shared with investors for review and still requires cabinet approval.
Regarding the pensions of retired PIA employees, the Secretary revealed that the total pension liability amounts to 35 billion rupees. The government will cover the pensions of already retired employees and has assumed 600 billion rupees of PIA’s 800 billion rupee debt, effectively leaving PIA debt-free.
The CEO of PIA informed the committee that the airline’s safety standards are globally recognized, and flights to the UK are expected to resume soon. He added that new investors would need to retain cabin crew and information technology staff.
Chairman Farooq Sattar stated that committee members would observe the bidding process, noting that the privatization of PIA is progressing faster compared to other institutions. He emphasized the importance of protecting employee rights during privatization and asserted that there should be no cuts to the salaries and allowances of PIA employees.
