Pakistan assures IMF of PIA sale by July amid privatisation push – The Times of India

Pakistan has assured the Worldwide Financial Fund (IMF) that it’ll full the sale of Pakistan Worldwide Airways (PIA) by July, following a failed try final 12 months, in accordance with a media report on Tuesday.
The nationwide provider has been battling heavy losses, and its privatisation is a component of the financial reforms instructed by the IMF. The authorities has put up for sale a stake starting from 51% to 100%. Nonetheless, the final try to promote PIA in October 2024 failed attributable to a scarcity of severe patrons, with the one bid—Rs 10 billion from a neighborhood actual property developer—being rejected.
An IMF crew is at present in Pakistan to evaluation the nation’s $7 billion mortgage programme. Pakistan must persuade the crew of its financial reforms to safe the following tranche of about $1 billion. One of the important thing considerations of the lender is the continued losses of state-owned enterprises, together with PIA.
Throughout a briefing to the IMF, the Privatisation ministry knowledgeable the delegation that the federal government plans to privatise 5 to seven entities, together with three monetary establishments and three energy distribution firms, by the top of the 12 months. Officers set a July 2025 deadline for promoting PIA and are at present assessing market curiosity earlier than formally inviting traders later this month.
Authorities have expressed warning over the success of this second try, as the federal government remains to be evaluating investor confidence in buying a loss-making airline. Nonetheless, three events have reportedly proven curiosity in bidding, together with two that withdrew final 12 months attributable to considerations over gross sales tax on leased plane and PIA’s Rs 45 billion liabilities. The IMF has now agreed to loosen up these circumstances, alongside reopening European flight routes, in hopes of attracting patrons.
Pakistan has additionally assured the IMF that it plans to promote three energy distribution firms—Faisalabad, Islamabad, and Gujranwala—by December. The remaining choice on whether or not to promote them collectively or individually will probably be made primarily based on recommendation from monetary specialists.
Moreover, officers acknowledged that the United Arab Emirates is enthusiastic about buying First Ladies Financial institution Restricted as a full industrial financial institution, with the deal anticipated to be finalised by Could. Nonetheless, the UAE prefers a direct authorities-to-authorities settlement fairly than an open bidding course of.
The authorities can also be within the course of of hiring monetary advisers for the sale of Zarai Taraqiati Financial institution Restricted, which it hopes to promote by November, and Home Constructing Finance Firm, which it expects to dump subsequent month after a number of missed deadlines.