Minister says govt poised to reopen bidding to push PIA privatisation

ISLAMABAD: Federal Minister for Privatisation Abdul Aleem Khan said on Monday that the government turned into set to restart the bidding process for the privatisation of the coins-strapped Pakistan International Airlines (PIA) after receiving an underwhelming provide of Rs10 billion from a sole bidder. Aleem’s remarks got here throughout the assembly of the Senate Standing Committee on Privatisation, chaired through Senator Talal Chaudhry, in which he briefed individuals at the PIA privatisation efforts. He told the assembly that the government was making plans to ask sparkling expressions of hobby (EOIs) after earlier attempts faced hurdles, such as a lack of buyer hobby and bids falling extensively underneath the benchmark value. The authorities had eyed selling a prime proportion in the country wide provider, however buyers pulled out, with simplest Blue World City filing a bid of Rs10 billion towards an envisaged minimal bid of over Rs80 billion. Finance Minister Muhammad Aurangzeb had termed the failed PIA privatisation move a “setback” for the authorities however confused that the International Monetary Fund (IMF) listened to the authorities in this and that privatisation of SOEs might maintain. The government is pressing for the privatisation of loss-making SOEs not handiest due to fiscal constraints however additionally because it’s far part of the IMF’s call for, which has accredited a $7 billion loan for Pakistan. The minister highlighted that fascinated events had proven initial enthusiasm all through earlier bidding rounds — but it did now not materialise. He emphasized PIA’s ability to end up a profitable entity if restructured correctly. “PIA operates rewarding routes and may be transformed into a earnings-generating organization,” Aleem asserted. Drawing parallels with Air India, he mentioned that its privatisation succeeded handiest after 5 failed attempts, underscoring the want for endurance inside the system. He also criticised the Federal Board of Revenue (FBR) for implementing GST on aircraft purchases, a tax he claimed changed into no longer levied globally in that way. “I urged the FBR to waive GST on new aircraft purchases, however they continue to be inflexible. This tax has drastically raised fees for obtaining new planes,” he stated, adding that such financial hurdles want resolution to ensure easy privatisation. Aleem similarly said that Prime Minister Shehbaz Sharif has prioritised PIA’s privatisation whilst urging different ministries to cooperate to make the process a hit. He additionally careworn that the authorities have to address economic liabilities in public institutions earlier than providing them for privatisation. During the consultation, the secretary of the Privatisation Commission discovered that buyers had requested Rs26 billion in tax waivers and dedicated to financing Rs10 billion in liabilities. Despite the challenges, preparations for inviting new bids are underway, with officials pledging a streamlined technique this time. The privatisation minister reiterated the urgency of PIA’s privatisation, mentioning that a well timed decision become crucial to reversing the airline’s economic decline and unlocking its ability as a worthwhile commercial enterprise.