An overseas Pakistani group, Al-Nahang, has presented a bid exceeding Rs 1.25 trillion for the privatization of Pakistan International Airlines (PIA), according to official sources.The group has reached out to senior government officials, including the Minister of Privatization, Minister of Aviation, and Minister of Defense, through an email outlining the key aspects of their proposal.
The main highlights of their offer are as follows:
- Debt Clearance: Al-Nahang has offered to settle PIA’s outstanding debts, which total around Rs 250 billion, providing a significant financial relief to the airline.
- Employee Retention and Salary Hike: In an effort to ensure job security, the group has assured that no employees will be laid off. Instead, Al-Nahang has committed to increasing employees’ salaries by 100% over a 30-month period.
- Revitalization Plan: The group has promised to introduce a comprehensive business plan aimed at modernizing PIA, including the procurement of new, state-of-the-art aircraft to revamp its aging fleet.
- Establishing an Engineering Hub: Al-Nahang also envisions transforming PIA into a major engineering and maintenance hub, offering services not only for its own aircraft but also catering to the needs of other international airlines.
These developments come after the Khyber Pakhtunkhwa (KP) government expressed interest in entering the privatization bidding process. The KP Investment Board wrote to the Federal Minister for Privatization, Abdul Aleem Khan, to formally announce their intent to submit a bid for the national carrier.
In an earlier statement, Pakistan Muslim League-Nawaz (PML-N) President Nawaz Sharif revealed that his daughter, Punjab Chief Minister Maryam Nawaz, had suggested buying PIA and rebranding it as “Air Punjab.” He stated that Maryam had sought his advice about the feasibility of taking over PIA and establishing a new airline.
The final round of bidding for PIA’s privatization saw just one bid of Rs 10 billion ($36 million) for a 60% stake in the airline. Despite six groups being pre-qualified by the government in June, only one bidder, the real estate development company Blue World City, participated. However, their bid fell short of the government’s minimum price of Rs 85 billion, raising questions about the privatization process’s future direction.
