ISLAMABAD: The privatization ministry said in a statement that the board of the Privatization Commission on Wednesday rejected a proposal of Rs10 billion made by the only bidder for the sale of 60% of the shares in Pakistan International Airlines Corporation Limited (PIACL).
The board made the decision to forward the privatization of PIA to the Cabinet Committee on Privatization for additional deliberation.
Only one bid of Rs10 billion for a 60% share in the national flag carrier was received during the last month’s final bidding procedure for the privatization of PIA.
Only Blue World City, a real estate development company, entered the bidding procedure and submitted an offer that was less than the Rs85 billion minimum price established by the government.
The PC Board wants better deals for state-owned businesses.
Although six groups were prequalified by the government in June, only Blue World City took part in the final bidding process. The commission allowed the consortium additional time to revise its bid because of the significant discrepancy between the anticipated and actual bids. Saad Nazir, the chairman of the Blue World City consortium, did not alter the price, though.
The board talked about accelerating privatization initiatives for state-owned companies, including PIA, in a meeting on Wednesday that was presided over by Privatization Minister Abdul Aleem Khan. The board also emphasized the need to draw in more competitive bids for future deals.
Mr. Khan emphasized the significance of obtaining higher offers for future bids and ordered that the privatization process proceed immediately.
The board examined the state of other ongoing privatization deals and looked into several ways to speed up PIA’s divestment.
The caretaker government’s framework for the privatization of PIA was adopted, according to Mr. Khan, but “now we have to keep in mind the concerns of the institutions involved in the privatization.” He emphasized that “we must be more active in the future and learn from the privatization process of PIA.”
In order to involve board members in the privatization process, the board decided to establish a three-member committee. The meeting expressed satisfaction with the progress made thus far and received a briefing on a variety of privatization-related topics.
During the meeting, a number of proposals for PIA and the privatization process were presented, opinions were voiced on a number of topics, and significant decisions were made. All board members of the Privatization Commission were given the opportunity, and the minister listened to their recommendations. There was also discussion of significant problems pertaining to the privatization of other projects.
According to the ministry’s statement, Mr. Khan stated, “The privatization issues will be completed in accordance with the laws and regulations and keeping in mind the national interest before us because the cabinet committee has to make the final decision on the issues of privatization of PIA and other institutions.”
The Privatization Commission secretary mentioned in his briefing that a number of foreign airlines, like as Singapore Airlines and Turkish Airlines, had shown interest in PIA’s privatization.
