Islamabad, April 17, 2025 – Pakistan is set to relaunch its efforts to privatize Pakistan International Airlines (PIA) by inviting fresh bids next week, the Ministry of Privatisation announced on Thursday. The move comes as the government aims to offload a 51-100% stake in the national carrier, aligning with a $7 billion IMF program focused on reforming loss-making state-owned enterprises and boosting fiscal health.
The decision follows PIA’s recent milestone of posting its first annual profit in over 20 years, a development that could bolster investor confidence. Last year’s attempt to privatize the airline fell short, attracting only one bid that was significantly below the government’s target of over $300 million. Learning from past challenges, the Privatisation Commission Board has now greenlit a new bidding process, complete with updated pre-qualification criteria to attract credible investors.
“The board has finalized the criteria for prospective bidders, ensuring a transparent and competitive process,” the ministry said in a statement. Expressions of interest for acquiring a majority or full stake in PIA will be sought starting next week.
To address concerns raised during the previous failed attempt, the government has taken significant steps, including transferring nearly all of PIA’s legacy debt to public accounts. Muhammad Ali, the government’s privatization advisor, emphasized that the issues which deterred bidders last year have been resolved, paving the way for a smoother process this time.
The privatization of PIA is a critical component of Pakistan’s broader economic reforms, aimed at reducing the financial burden of state-owned entities. With the airline now showing signs of financial recovery, the government is hopeful that the upcoming bidding round will draw robust interest from both domestic and international investors.
As Pakistan prepares to open the bidding process, all eyes will be on whether this renewed effort can finally deliver a successful sale for the long-struggling national carrier.
