Pakistan International Airlines (PIA) may be sold to a foreign government, with the Privatisation Commission reportedly rejecting a Rs10 billion bid from the Blue World Consortium, ARY News reported on Wednesday, citing sources.

As part of efforts to raise funds and restructure state-owned enterprises under a USD 7 billion International Monetary Fund (IMF) programme, Pakistan is seeking to offload a 51-100 per cent stake in the struggling airline. However, the Privatisation Commission has declined the Rs 10 billion bid made by Blue World Consortium, as reported by ARY News.

According to ARY News, citing sources, the PIA is now likely to be sold to a foreign government under a government-to-government (G2G) agreement, with Qatar or Abu Dhabi considered potential buyers. The Strategic Investment Facilitation Council (SIFC) is reportedly planning to invite expressions of interest (EOIs) from foreign investors by November 30.

Negotiations with Qatar or Abu Dhabi are expected to be facilitated by several pre-established terms and conditions, which could expedite the process, ARY News reported, citing sources.

In October, the bidding process for PIA’s privatisation attracted only a single bid of Rs 10 billion (USD 36 million) for a 60 per cent stake in the airline. Despite six groups being pre-qualified in June, only the real estate firm Blue World City submitted a bid, which fell far below the government’s minimum asking price of Rs 85 billion.

On Thursday, Pakistan Media reported that the Privatization Commission Board rejected the Rs 10 billion bid submitted by Blue World City Consortium for the divestment of 60 per cent shares of Pakistan International Airlines Company Limited (PIACL) on 31st October 2024.

Federal Minister for Privatization, Board of Investment and Communications Abdul Aleem Khan chaired a high-level meeting of the Privatization Commission Board in which various issues, including the privatisation of PIA were discussed and recommendations were approved.

In this meeting, it was decided to refer the issue of privatisation of PIA to the Cabinet Committee, while the Privatization Commission Board meeting was briefed on various issues of privatisation and satisfaction was expressed over the development so far.