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Pakistan Sets Dec. 23 Live Auction to Privatize PIA

The auction tests IMF-linked reforms following a state absorption of most of the airline’s debt.

Overview

  • Prime Minister Shehbaz Sharif said the entire bidding will be broadcast nationwide to ensure transparency.
  • Four pre-qualified bidders will compete: Lucky Cement Consortium, Arif Habib Consortium, Fauji Fertiliser Company Limited, and Airblue Limited.
  • The offer includes a 51% to 100% stake with management control, tax relief on leased aircraft, and limited protection from legacy legal and tax claims.
  • A previous attempt failed when a lone Rs10 billion offer was rejected against a Rs85 billion floor, leading to the redesigned process.
  • The government is targeting Rs86 billion in privatisation receipts this year under a $7 billion IMF programme, with PIA expected to contribute significantly.