PIA Privatization 2025 Deadline Moved to December Amid New Investor Interest
- Abeera Marium Siddiqui
- April 14, 2025
- 11:13 am
- 42
- Business
PIA privatization 2025 is now officially delayed. The government has extended the deadline from July to December 2025. This change gives more time for bidding, due diligence, and negotiations. Adviser to the Prime Minister on Privatization, Muhammad Ali, shared this update with the Senate committee and confirmed the new timeline.
The government will issue a new Expression of Interest (EoI) by April 2025. Investors will assess Pakistan International Airlines’ (PIA) assets and financial details in July. Bid evaluations will happen in September. The final deal is expected by December.
Last year’s privatization attempt failed. Only one buyer showed up. Their bid was much lower than the asking price of over $300 million. Since then, the government has worked to make PIA more appealing to investors.
The Privatization Commission Board has approved a new structure for the deal. It allows selling 51 to 100 percent of PIA’s shares. The buyer will also get full management control. Officials said the plan will protect employee rights. It will also ensure smooth service during the transition.
More state-owned enterprises (SOEs) are also up for privatization. These include State Life Insurance Corporation, Utility Stores Corporation, First Women Bank Limited, and House Building Finance Company. Power companies like IESCO, FESCO, and GEPCO are also on the list.
There are 84 SOEs under the federal government. Out of these, 24 are on the privatization list. Ten will likely be privatized within one year. The goal is to cut losses and improve performance by bringing in private owners.
PIA has faced many issues. It has struggled with growing debt and poor performance. Officials believe privatization will bring financial stability and better services. In a meeting, Muhammad Ali said, “PIA was once profitable but has been incurring losses for years.”
The government has already taken steps to clean up PIA’s finances. They moved a large chunk of old debt to public accounts. This helps ease investor worries and remove problems that blocked earlier deals.
They are also changing the rules for selecting buyers. The government will adjust financial and experience requirements. This will attract more investors. The airline’s reference price might also change, depending on its new financial records.
The Roosevelt Hotel in New York is also under review. PIA owns this hotel. It is seen as a valuable asset. The government is waiting for advice from a financial expert before taking any next steps.
PIA privatization 2025 is part of a wider reform plan. The International Monetary Fund (IMF) has asked Pakistan to privatize companies that keep losing money. The sale of PIA is a major part of that plan.
The Senate committee also discussed Zarai Taraqiati Bank Limited (ZTBL). Members said the bank is important for farmers. They warned not to ignore its role in rural areas. Muhammad Ali responded that ZTBL has suffered billion-rupee losses and is struggling to recover loans. He further added that the process is still early and open to change.
The committee asked for more talks. They want to meet with farmer groups and ZTBL leaders in future meetings. They also plan to contact the Prime Minister for input on ZTBL’s future.
Despite past issues, investor interest in PIA is growing. Sources say major business groups are showing serious interest. If the new plan stays on track, the government may finally reach its privatization goals.
