Islamabad [Pakistan], December 1 (ANI): The Pakistani government is intensifying efforts to privatise Pakistan International Airlines (PIA) through government-to-government (G2G) agreements, with a deadline set for December 31, ARY News reported on Saturday, citing sources.
According to the report, both Abu Dhabi and Qatar have expressed strong interest in PIA's privatisation, creating a potential opportunity for foreign investment. Active discussions are underway with both countries to finalise the terms of the deal.
To attract investors, the Securities and Exchange Commission of Pakistan (SECP) is reportedly offering substantial incentives to those looking to acquire stakes in PIA. These measures are designed to ensure a smooth transition during the privatization process, providing necessary support to potential investors, ARY's report added.
Further, citing sources, ARY News stated that a key development in PIA's financial recovery is the reopening of its European routes, which has positively impacted the airline's revenue. This expansion into Europe has provided a significant boost to the airline's financial standing.
PIA's operations to the UK are progressing without major issues, as the UK had previously conditioned approval for direct flights on clearance from the European Union Aviation Safety Agency (EASA). With this approval now secured, PIA is set to begin direct flights to London and Manchester, greatly improving its connectivity to the UK.
To improve its operations, PIA plans to deploy four Boeing 777 aircraft to strengthen its flights to Europe and the UK. This strategic move is expected to bolster the airline's position in the international market and accelerate its financial recovery.
The introduction of additional aircraft and the expansion of UK and European routes are expected to reduce PIA's annual losses and improve its overall financial health, with longer-term benefits anticipated.
As the government pushes forward with privatisation efforts, strategic expansions, and the introduction of new aircraft, PIA is working to improve its financial stability and operational efficiency. The government's emphasis on attracting foreign investment and expanding the airline's international network reflects its commitment to revitalising the national carrier.
In October 2024, Finance Minister Muhammad Aurangzeb stated that the government plans to complete PIA's privatisation, along with that of three power distribution companies, by the end of the year. Initially set to conclude by October 1, the privatisation process was delayed to October 31 due to low bidder interest, ongoing legal challenges, issues with the ageing fleet, and civil aviation concerns. (ANI)
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