ISLAMABAD: Privatisation Commission is planning to publish expression of interest (EOI) for privatisation of Pakistan International Airline Company Limited (PIACL) by end of current month (January). Sources said that a committee constituted by the Cabinet Committee on Privatisation (CCoP) would send its recommendations pertaining to EOI to the CCoP’s consideration and the EOI will likely to be published by the end of the current month.
The CCoP on November 14, 2024 approved the PC Board’s recommendations of privatisation of PIACL.
Subsequently, same was ratified by federal cabinet on December 2, 2024.
PIA privatisation: taking off?
The IMF was briefed on critical questions of bidders in November and December 2024.
Accordingly, the IMF conveyed its consent on critical questions of bidders on December 2024.
Other entity includes House Building Finance Corporation which likely to privatise in current fiscal year.
Transaction is currently at final stage.
Share purchase agreement is being finalised with the buyer; i.e., Pakistan Mortgage Refinance Company Limited (PMRCL) as per approved decision of federal cabinet on July 26, 2023.
The cabinet decided to allow the PC to proceed with a single source and a negotiated transaction with PMRCL for the privatisation of HBFC.
The HBFC has been on the active privatisation list since 2018. \Four parties had shown interest in acquisition.
Two foreign bidders, ICD-Islamic Development Bank and IFIC Bangladesh, subsequently did not show interest in the transaction.
The State Bank of Pakistan did not clear the third bidder, Pakistan Housing Finance Company, due to its “non-compliance status”.
The federal government has set a budgeted target of collecting Rs30 billion through privatisation proceeds in the upcoming fiscal year 2024-25.
The government intends to privatise 25 state-owned entities, including Pakistan International Airlines (PIA), Roosevelt Hotel, First Women Bank, Utility Stores Corporation, and various power distribution companies.
Copyright Business Recorder, 2025
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