Pakistan has assured the International Monetary Fund (IMF) that it will complete the sale of Pakistan International Airlines (PIA) by July, following a failed attempt last year, according to a media report on Tuesday.
The federal provider has been struggling with large deficits, and its privatisation is part of the socioeconomic changes suggested by the IMF. The government has put up for sale a stake ranging from 51 % to 100 %. However, the final attempt to sell PIA in October 2024 failed due to a shortage of major customers, with the only bid—Rs 10 billion from a local real estate developer—being rejected.
An IMF team is currently in Pakistan to examine the government’s$ 7 billion mortgage program. Pakistan needs to convince the staff of its financial measures to secure the second round of about$ 1 billion. One of the important issues of the borrower is the continued loss of state-owned companies, including PIA.
During a presentation to the IMF, the Privatisation government informed the committee that the state plans to privatise five to seven companies, including three financial organizations and three power distribution companies, by the end of the year. Officers set a July 2025 date for selling PIA and are now assessing business attention before fully inviting buyers later this month.
Regulators have expressed prudence over the success of this second effort, as the state is also evaluating buyer confidence in acquiring a loss-making airline. Nevertheless, three parties have reportedly shown interest in buying, including two that withdrew last season due to concerns over income taxes on leased plane and PIA’s Rupees 45 billion responsibilities. The IMF has today agreed to calm these conditions, alongside reopening Western trip routes, in hope of attracting customers.
Pakistan has even assured the IMF that it plans to sell three electricity supply companies—Faisalabad, Islamabad, and Gujranwala—by December. The ultimate decision on whether to sell them together or individually may be made based on advice from financial experts.
Furthermore, leaders stated that the United Arab Emirates is interested in acquiring First Women Bank Limited as a complete business bank, with the offer expected to be finalised by May. Nevertheless, the UAE prefers a clear government-to-government contract rather than an empty bidding process.
The state is also in the process of hiring economic advisers for the price of Zarai Taraqiati Bank Limited, which it hopes to sell by November, and House Building Finance Company, which it expects to unload second quarter after many missed deadlines.
