Arif Habib Consortium has bid $115 billion (Rs 10.29 lakh crore) for the privatization of Pakistan National Airlines (PIA). This is the highest bid. Whereas Lucky Cement has bid for $101.5 billion and Airblue has bid for $26.5 billion. Arif Habib Group is a group of four companies, which include companies ranging from fertilizer to education sector. Arif Habib Group is counted among the most experienced corporate houses of Pakistan.
75% shares of Pakistan International Airlines (PIA) are being auctioned. 92.5% of the total amount received from the auction will be spent on reforms and restructuring of the airline. PIA has 32 aircraft, which include models like Airbus A320, Boeing 737, Airbus A330 and Boeing 777.
The condition of PIA has been bad for many years. The reason for this is poor management, lack of flights, complaints from passengers and huge debt. The biggest blow to PIA's credibility was the Karachi plane crash of 2020. After that accident, it was revealed that the licenses of more than 260 pilots of PIA were doubtful or suspended. Many countries banned PIA flights and earnings almost came to a standstill.
Due to losses it became difficult for the government to handle the airlines. on the other side Pakistan There is pressure from IMF on the government. Pakistan needs a relief package of about 7 billion dollars from the IMF and in return the IMF wants the loss-making government companies to be handed over to private hands.
According to Muhammad Ali, advisor of PIA's privatization committee, this step is part of the government's reform agenda. The aim of the government is not just to sell PIA, but to make it self-reliant and strong. The government believes that privatization of PIA will boost foreign and domestic investment in the country. Muhammad Ali told that two-thirds of the payment can be taken in the beginning and one-third later. Apart from this, permission has also been given to add two new partners after the bidding.
Earlier in the auction process, Fauji Fertilizer belonging to the army was also in the list. But at the last moment the company withdrew its name. It is being claimed in media reports that if a company linked to the army had won the bid, it would have sent a wrong message to the IMF. IMF clearly wants that PIA should go completely into private hands and not indirectly under government or military control.
