Pak PIA Privatisation Hit as Fauji Fertiliser Pulls Out
Exit leaves three bidders in race for 75% stake in Pakistan’s national airline
- Fauji Fertiliser withdraws from Pak PIA privatisation just before bid deadline
- Three prequalified bidders remain; sealed bids due by December 23
- Govt offering 75% stake with option to buy remaining 25% later
- PIA urgently needs fresh capital and professional management
GG News Bureau
Islamabad, 22nd Dec: Pakistan International Airlines’ privatisation process has suffered a major setback after Fauji Fertiliser Company Ltd formally withdrew from bidding for a 75 per cent stake in the national carrier, just ahead of the sealed bid submission deadline.
According to Geo News, citing The News, officials of the Privatisation Commission said Fauji Fertiliser did not deposit the required earnest money on the final submission date and informed the commission of its decision to opt out.
With Fauji Fertiliser’s exit, three prequalified bidders remain in the race and are expected to submit sealed bids by December 23. These include Airblue (Pvt) Ltd; a consortium led by Lucky Cement with Hub Power Holdings, Kohat Cement and Metro Ventures; and another consortium led by Arif Habib Corporation, which includes Fatima Fertiliser, City Schools, Lake City Holdings and AKD Group Holdings.
Officials said the withdrawal allows Fauji Fertiliser the option of joining a successful consortium at a later stage. Under the privatisation plan, bids are being invited for a 75 per cent stake in Pakistan International Airlines, with the winning bidder given a 90-day option to purchase the remaining 25 per cent share held by the government.
The bidding process will involve sealed bids, approval of the reserve price by the Privatisation Commission Board and the Cabinet Committee on Privatisation, followed by public opening of bids.
The Pakistan government has assured PIA employees of one year of job security, while pension and post-retirement liabilities will be handled by the holding company. Officials said the airline, which flies to 78 destinations and holds around 170 international landing slots, needs urgent capital infusion and professional management to revive its operations.
