Federal Minister for Privatisation, Board of Investment & Communications Abdul Aleem Khan on Sunday said the Privatisation Commission (PC) had no objection if any provincial administration wished to buy the Pakistan International Airlines (PIA).
The minister passed these remarks in a media talk in Lahore.
“PIA is a national asset… we welcome provincial governments to bid for the airline’s ownership, but they have to meet the minimum expected price set by the PC,” he said.
Two provinces, Khyber Pakhtunkhwa (KP) and Punjab, reportedly showed interest in buying the national airline after Blue World City consortium – only entity to bid – refused to match the minimum expectation of the PC of Rs85.03 billion and stuck to its original offer of Rs10 billion for a 60% stake in PIA.
A total of six groups had earlier been shortlisted to bid for shares in PIA including Airblue Ltd., Arif Habib Corporation Ltd., Air Arabia’s Fly Jinnah, Y.B. Holdings Pvt., Pak Ethanol Pvt. and real estate consortium Blue World City.
However, the government received interest from only one group for a stake in the national carrier as other consortiums stayed away from one of the country’s major privatisation attempts.
Rules and regulations indicate that the ball is now in court of the Privatisation Commission to declare Blue World City as the highest ranked bidder or cancel the bidding process.
“We can’t sell PIA at any or low price,” Aleem Khan said, adding that the federal cabinet would decide if a new framework was required for privatisation of PIA.
CCP passes merger order: Holdco acquires 100pc stake of PIACL
He apprised that when he took oath as the minister in March, PIA was incurring a loss of Rs830 billion that was reduced to around Rs200 billion after creating of Holdco, a public limited company wholly owned by the Government of Pakistan.
Earlier this year, the Competition Commission of Pakistan (CCP) passed a merger order, approving the acquisition of the 100 percent shareholding of Pakistan International Airlines Corporation Limited (PIACL) by PIA Holding Company Limited (Holdco).
The minister said the structure of privatisation of PIA had already been created before he took charge of the ministry and he had no authority to change that framework which was already been finalised.
“My job is just to sell PIA, not to make its operations better,” Aleem Khan said. “PIA can be made profitable even today with better policies and proper investment,” he added.
Govt urged to ‘revive’ PIA privatisation process
The minister affirmed that as the Federal Minister of Privatisation he was bound by the laws and regulations under which to carry forward the process of privatisation.
“We will definitely privatise PIA and do it in a better way.
“We have more options regarding the privatisation of PIA, the government can also take out the remaining Rs200 billion liabilities of the institution and give a ‘clean PIA’.”
Regarding his absence in the bid opening ceremony, the minister said he was not in the country, and was on an official visit to Riyadh for a meeting with the Saudi counterpart.