Pakistan to Auction Debt-Ridden National Airline PIA: IMF Deadline Looms

Pakistan's government is set to auction its debt-ridden national airline, Pakistan International Airlines (PIA), on December 23, in a move aimed at bringing in much-needed funds and reforming the struggling carrier. This sale is part of a USD 7 billion programme with the International Monetary Fund (IMF), which the country hopes will help stabilise its economy. The airline has been running at a loss, with a significant financial backlog caused by overstaffing and poor management. The government had previously attempted to privatise PIA last year, but the effort was dropped due to a lack of suitable offers. This time, the authorities are seeking to sell between 51 and 100 per cent of the airline to potential buyers, including local investors and foreign companies. The IMF has set a deadline for Pakistan to complete the PIA bidding process by the end of the year, with the next USD 1.2 billion payment package scheduled for release on December 8. The sale is expected to be a major step towards privatising the country's first major asset in almost two decades. Four local firms, including Fauji Fertiliser, Habib Rafique, Younus Brothers, and Airblue, have expressed interest in bidding for a majority share in PIA. However, there is speculation about the involvement of Pakistan's Field Marshal Asim Munir's 'firm' in the bidding process, given his indirect influence over the Fauji Foundation, which owns Fauji Fertiliser. The privatisation of PIA is seen as a crucial step in reforming the country's cash-draining carrier and bringing in much-needed funds. The success of the sale will be closely watched, both domestically and internationally, as it will have a significant impact on Pakistan's economy.