By Ahmed Siddique
Pakistan’s ongoing efforts to privatize its national carrier, Pakistan International Airlines (PIA), have hit another major roadblock, as the latest attempt has failed to attract sufficient interest from foreign investors. The Privatization Commission is once again facing criticism, with public confidence in the government’s ability to successfully revive and offload the struggling airline quickly declining. This setback marks another blow to the government’s broader strategy of reducing its stake in loss-making state-owned enterprises, particularly PIA, which has long struggled with financial issues, mismanagement, and operational inefficiencies.
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Adding to the complications, several prominent Pakistani business groups have been eliminated from the next phase of the privatization process. Out of the eight groups that submitted expressions of interest, only five have made it to the shortlist, while three have been disqualified from moving forward. Among the shortlisted groups is Airblue, a private Pakistani airline, which now stands as one of the more notable contenders still in the race to acquire PIA.
Compounding the challenge, a bid submitted by a group of PIA employees aiming to take control of the airline was also rejected, further reducing the pool of potential buyers. The disqualification of the employee-led initiative has raised further concerns about the inclusiveness and transparency of the process.
The shrinking list of interested and eligible parties has raised red flags about the feasibility of the privatization plan. With limited options on the table, the government faces growing pressure to either restructure its approach or risk another complete collapse in its attempts to offload the national carrier. As the situation stands, the future of PIA’s privatization remains uncertain and deeply contested.
