The bidding process for the privatisation of Pakistan International Airline (PIA) is scheduled to take place on October 1, 2024.
This decision was announced during a meeting of the Standing Committee on Privatization of the National Assembly, chaired by Farooq Sattar. The final approval of the bids will be sought from the federal cabinet.
In his briefing, the Secretary of the Privatisation Commission revealed that the PIA privatisation process commenced in November 2023 and has now reached its concluding stages, with investor preparations for bidding nearly complete.
He stressed that the successful bidder will be required to invest between 65 to 70 billion rupees and increase PIA’s fleet from 18 to 45 aircraft within a span of three years.
The Secretary further clarified that while PIA's existing staff will be retained for a period of two to three years, any changes to the airline's routes will necessitate government approval.
These stipulations are integral to the agreement that will be established with the winning bidder, and discussions are ongoing regarding the lifting of a European ban on PIA, with steps being taken to facilitate the resumption of flights to Europe.
Committee member Sahar Kamran urged that the draft agreement be presented to the committee for review. In response, the Secretary confirmed that the draft has been shared with investors and is pending cabinet approval.
Addressing the issue of pensions for retired PIA employees, the Secretary noted that the total pension liability amounts to 35 billion rupees. The government will assume responsibility for paying pensions to retired employees, having already injected 800 billion rupees into PIA to alleviate its debt burden, which now stands at zero.
The Chief Executive Officer of PIA assured the committee that the airline's safety standards are currently at the highest international levels, with hopes to resume flights to the UK in the near future. He indicated that the new investors would need to recruit additional cabin crew and IT staff.
Chairman Sattar expressed his satisfaction with the expedited privatization process of PIA compared to other institutions. He stressed the importance of safeguarding employee rights during the transition, ensuring there will be no reductions in salaries and allowances for PIA employees.
