Asif anticipates higher PIA valuation in second privatization round following EASA decision

Aviation Minister Khawaja Asif on Saturday welcomed the European Commission and European Aviation Safety Agency (EASA) decision to lift the suspension on Pakistan International Airlines (PIA), saying that the development will help secure a higher value for the indebted national carrier.

“The second attempt for PIA’s privatization, which is set to take place soon, will benefit significantly from this development. It will add substantial value to our transaction,” said Asif while addressing media persons in Sialkot.

The remarks from the country’s aviation minister come a day after EASA officially lifted its ban on PIA, enabling the national carrier to resume Paris, France operations, initially after more than four years of restrictions.

The decision came a year after the visit of the EASA team, and the European Commission to Pakistan.

PIA privatisation has been a subject of concern for authorities in Islamabad, which were offering a stake of between 51% and 100% in the debt-ridden airline as part of reforms urged by the International Monetary Fund (IMF) with which it has an ongoing 37-month, $7-billion bailout.

However, after much delay, the government received only one bid i.e. from Blue World Consortium for a 60% stake in PIA, offering Rs10 billion against the Privatization Commission’s minimum price of Rs85 billion.

The government rejected the bid and decided to go for another round of privatisation.

Meanwhile, the aviation minister on Saturday lauded the role of this team and government officials for the achievement.

“The foundation for all these efforts was laid by Saad Rafique when he was the Minister of Aviation during the PDM government,” said Asif. “We have reached our destination because of his efforts.”

The minister stated, “PIA holds only 30% share of Pakistan’s aviation market, while the remaining 70% is captured by foreign airlines.”

However, he was optimistic that the lifting of the EASA ban would allow PIA to recapture European traffic “and also traffic from other countries”.