ISLAMABAD, September 25, 2024 — The much-anticipated bidding process for the privatization of Pakistan International Airlines Company (PIAC) will be shown live on media on October 1, 2024, following approval by the federal cabinet.
This historic step marks a key moment in the government’s efforts to reform the national flag carrier, which has been facing financial turmoil for years.
During a meeting of the National Assembly’s Standing Committee on Privatization, chaired by Muhammad Farooq Sattar, it was revealed that the live broadcast aims to ensure transparency in the bidding process. The Secretary of the Ministry of Privatization briefed the committee on the status of the privatization efforts and confirmed that a contract with the winning company or consortium will be finalized shortly after the bidding.
PIA has been struggling with a severe financial crisis, burdened by billions in debt and a declining market share. The airline’s privatization has been long discussed, but resistance from unions and political challenges delayed the process. The upcoming live bidding represents a significant move toward the airline’s potential revival through private investment.
Employee Protections and Sub-Committee Formation
A key concern throughout the privatization discussions has been the protection of employee rights. During the meeting, the committee was assured that the rights of PIAC employees will be safeguarded throughout the transition process. This includes protection of job security and benefits, which has been a contentious issue as thousands of employees fear potential layoffs once the airline moves to private ownership.
To address concerns over the long-standing decline of the airline, the committee also formed a sub-committee tasked with investigating the reasons behind PIAC’s downfall. The sub-committee will be led by Convener Ms. Sehar Kamran, with members Ms. Sofia Saeed Shah and Ms. Saba Sadiq. The committee’s findings will be submitted to the Standing Committee for further discussion and possible actions.
PIAC’s Decline and Hope for Revival
PIA’s financial and operational troubles have escalated over the years, with outdated aircraft, poor management, and stiff competition from regional airlines all contributing to its downfall. The government has been keen to attract private investors who could inject much-needed capital and expertise to modernize the airline and make it competitive on the international stage.
The privatization of PIAC is part of a broader strategy by the government to reform loss-making state-owned enterprises and reduce the financial burden on the national economy. The live broadcast of the bidding process is intended to build public confidence in the transparency and fairness of the process.
For PIA, the upcoming bidding represents a pivotal moment, and the outcome will likely shape the future of Pakistan’s national carrier for years to come. The airline’s workforce, investors, and the general public will be watching closely as the government moves forward with what could be one of the most significant privatization deals in Pakistan’s history.
