New Delhi: Pakistan’s ongoing attempts to privatise its national carrier, Pakistan International Airlines (PIA), have reached a new low, as the most recent bidding round received only one significantly undervalued offer. Over the years, numerous privatisation efforts have been unsuccessful because of opposition from political parties, protests from unions, and concerns about corruption, all common challenges in privatising public sector organisations. Due to pressure from the IMF to alleviate fiscal strain, Pakistan has ramped up efforts to sell its financially struggling airline.
The most recent offer for PIA was made by Blue World City, a real estate company with strong military ties and a questionable history, offering only $36 million, significantly less than the government’s minimum expectation of $306 million. With only 18 of 34 aircraft in operation, PIA’s restricted routes, antiquated brand, and substantial debt have dissuaded potential investors. Furthermore, the government intends to maintain a 40 percent stake, which has raised concerns about potential political interference.
PIA’s challenges have continued to increase over time. In 2020, a fraudulent pilot license scandal affecting almost 25 percent of PIA’s pilots resulted in global flight restrictions, exposing a history of corruption and operational shortcomings within the airline.
Despite previously being highly regarded, the PIA’s downfall has resulted in it becoming a financial liability with minimal market attractiveness. As Pakistan is in a dilemma of whether to accept the low bid or keep the financially burdened airline, ThePrint’s Editor-in-Chief Shekhar Gupta decodes this conundrum, and outlines the highs and lows of the airline in Episode 1546 of CutTheClutter.
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