The privatization of Pakistan’s loss-making state-owned airline, PIA, has been completed. The Arif Habib Group won the bid with the highest offer of 135 billion rupees. The government had assumed responsibility for 654 billion rupees of debt last year.
PIA Privatized Amid Economic Crisis
Islamabad: Facing an economic crisis, Pakistan has handed over its national airline, Pakistan International Airlines (PIA), to private hands. The Shehbaz Sharif government completed the privatization process of the loss-making airline on Tuesday. The Arif Habib Group acquired it with a bid of 135 billion rupees. The auction was broadcast live on television to ensure transparency.
In the auction held in Islamabad, Lucky Cement and private airline Airblue also placed bids. The government had set the initial price of PIA at 100 billion rupees. However, the Arif Habib Group's bid of 135 billion rupees was the highest and went unchallenged.
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The successful bidder will have to invest 80 billion rupees in PIA over the next five years. In addition, the government had assumed responsibility for PIA's 654 billion rupees of debt last year. Prime Minister Shehbaz Sharif called it the biggest transaction in Pakistan's history and described the process as transparent.
PIA was once among the world's leading airlines, but years of mismanagement and losses led to it accumulating massive debt. With the airline now in private hands, it is hoped that its operations will improve. Experts believe that with investment and better management, PIA can once again become a strong and profitable airline.
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The airline's financial situation is expected to improve after privatization. Under the leadership of the Arif Habib Group, new policies will be implemented at PIA, which will improve service quality and enhance its ability to compete in the international market. This step could play a significant role in Pakistan's commercial and economic reform.
