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KARACHI: The privatization process of Pakistan International Airlines (PIA) is expected to be completed by the first week of October 2024, according to Arif Habib, Chairman of the Arif Habib Group.

Speaking to a group of journalists at the Naya Nazimabad Gymkhana, Habib expressed confidence in the timeline for the PIA bidding process. “We are expecting that the bidding process of PIA would be concluded by the first week of October 2024,” he said.

Habib emphasised that the prospective buyer of PIA would need to induct at least 20 aircraft to the airline’s fleet to run its operations effectively. He believes that with the right strategic interventions, PIA can be transformed from a loss-making entity into a profitable one.

Senate panel told: 75pc of PIACL shares up for bidding by October

Regarding the ownership structure, Habib stated that buyers interested in acquiring PIA prefer to purchase 75% of the shares to gain majority control. He also noted that the airline cannot be sold within three years of privatisation.

One of the major challenges facing PIA is its staggering debt burden of Rs 800 billion, including interest payments. Habib said that Rs 600 billion of this debt would be transferred to the holding company, while the remaining Rs 200 billion would be shifted to the buyer. Habib further explained that a significant portion of PIA’s debt is tax liabilities and civil aviation dues. He emphasized that if the buyers are given a considerable period to pay off these debts, it would provide significant relief and contribute to the airline’s turnaround.

“While PIA is an operationally viable entity, if the issues related to debts and employees are resolved after the takeover, it could quickly turn around and become profitable,” Habib said.

The privatization of PIA has been a long-standing agenda, and the successful completion of the bidding process by October 2024 could pave the way for a new era of growth and profitability for the national carrier.

Copyright Business Recorder, 2024

Comments

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Twadi pehn di Sep 05, 2024 10:37am
Every month is next month.
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Khadim Hussain Sep 05, 2024 10:42am
Very good decision
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kambu Sep 05, 2024 10:42am
What is in it for the buyer? Middle east airlines already have access to the local traffic. For domestic routes its better to establish a new local airline and manage operations with 10 A320s. max
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usman Sep 05, 2024 12:52pm
please get rid off it.
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Rayyan Sep 05, 2024 02:27pm
What does he means by issues of employee
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Gobble Sep 05, 2024 03:07pm
How can they sell off a national asset ? The employees should stage a massive protest against the government…… it is the duty of the government to run the national carrier….
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Az_Iz Sep 05, 2024 04:47pm
We will probably read this same headline again and again, in future.
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Taruq sultan Sep 05, 2024 06:26pm
Privatisation may be an option, however in case of PIA it shall not work out due to current economic condition and continues interference from establidhment which runs the country
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SAQIB NAWAZ Sep 05, 2024 09:56pm
Hopefully this should be last deadline ۔۔۔۔ Please get rid of this white elephant nourishing on poor tax payers hardly earned money
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Babu Sep 05, 2024 10:32pm
Selling off PIA is not a good option.
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Usman Sep 06, 2024 12:22am
@Gobble, in that case the govt should fire 99percent of pia employees as they are incompetent
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Ali Sep 06, 2024 03:28am
@Usman, aur hakomat
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Masood Sep 06, 2024 12:29pm
@Gobble, In my humble opinion no level of Government should involve in doing business. There role should be like a regulator to oversee and enforce regulations.
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Faiz Jalib Sep 07, 2024 12:05pm
Pakistan disposal movement... They came, they saw, they sold
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