PAKISTAN
The Arif Habib Consortium has acquired the national airline, Pakistan International Airlines (PIA), for Rs135 billion.
In the third and final stage of bidding for the privatization of the national airline, the Arif Habib Consortium submitted a bid of Rs135 billion and successfully acquired a 75 percent stake in PIA.
The Lucky Consortium remained second with a bid of Rs134 billion.
Earlier, in the first phase of bidding, the Lucky Consortium had offered Rs101.5 billion, while Airblue submitted a bid of Rs26.5 billion. In the second phase, the Lucky Consortium increased its offer to Rs120.25 billion, while the Arif Habib Consortium submitted a revised bid of Rs121 billion.
Privatization Commission Adviser Muhammad Ali said that the privatization of the national airline is part of the government’s reform agenda. He emphasized that the government’s objective is not merely to sell the national airline, but to put it back on a sustainable footing. He added that the privatization of PIA would help attract investment into the country.
According to the adviser, the government wants the national airline to regain its past performance and standards. He said that 92.5 percent of the proceeds received from the bidding process will be spent on the improvement and revival of the national airline.
Muhammad Ali further stated that two-thirds of the payment will be made upfront, while one-third can be paid later. He also noted that bidders have been allowed to include up to two additional parties in their consortium after the bidding process.
The first phase
The first phase of the privatization process of the national airline has been completed, with three pre-qualified bidders submitting their bids for the acquisition.
According to officials, the bids will be opened at 3:30 pm, after which the reference, or reserve, price will be determined in a meeting of the Privatization Commission (PC) Board. Once finalized by the board, the reference price will be presented for approval before the Cabinet Committee on Privatization.
Speaking to reporters after the conclusion of the initial bidding phase, Privatization Adviser Muhammad Ali said that the process had successfully crossed a key milestone. He explained that the next step involves the PC Board’s review and approval of the national airline’s reserve price, which remains confidential at this stage.
Following the board’s approval, the matter will be taken to the Cabinet Committee on Privatization for final endorsement of the reserve price, he added.
Muhammad Ali described the development as a significant step forward, noting that no major privatization initiative has been carried out in the country over the past two decades. He expressed optimism that the completion of the first phase would pave the way for progress in the remaining stages of the privatization process. – ER Web Desk
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