ISLAMABAD: Pakistan has extended the deadline to submit Expression of Interest (EoI) for buying Pakistan International Airlines Corporation Limited (PIACL) until June 19, 2025, giving investors more time to prepare offers in one of the country’s biggest privatisation deals in years.
A senior official of the Privatisation Commission told The News that the cut off date has been officially extended by 15 days from the earlier June 3 deadline, with all other terms remaining unchanged.
The government is offering between 51 and 100 per cent equity in PIA, along with management control. When asked about the reason for the extension, the official said it was due to Eid.
This move comes as the government pushes ahead with plans to privatise the loss-making national carrier in a bid to cut the fiscal deficit, fix inefficient state-run enterprises, and attract foreign investment. The process is part of reforms agreed with the International Monetary Fund (IMF) under the Extended Fund Facility (EFF).
To make the deal more attractive, Islamabad has introduced new incentives, including GST exemptions on new aircraft and shifting PIA’s debt off its balance sheet. These changes aim to present PIA with a “net-zero balance sheet” to potential buyers. A revised price benchmark for the deal may also be set soon.
The current plan offers a simplified and cleaner transaction compared to an earlier failed attempt, which offered 60pc of shares with an optional 15pc top-up. Back then, PIA’s negative equity of Rs45 billion and 18 per cent GST on aircraft were key roadblocks. With the IMF’s approval, those liabilities are now absorbed by the government, making the deal more appealing. EY Consulting LLC is advising the Privatisation Commission on the sale. The government hopes to wrap up the process within the current calendar year.
