Qatar, the UAE and Saudi Arabia are engaged in negotiations with Pakistan regarding the potential acquisition of flag carrier Pakistan International Airlines (PIA), Dawn reported, citing the country's Ministry of Civil Aviation.
Talks commenced after the Pakistani government announced the privatization of PIA by June 11, with bidding potentially starting as early as next week.
Additionally, the ministry stated that companies from France, Germany, Malaysia, the Netherlands, Qatar, the UAE, Turkey and Qatar have expressed interest in outsourcing airport services in Pakistan to elevate quality and conform to global norms. Pakistani embassies in these countries have been instructed to inform said companies on pertinent outsourcing details and terms, which will transpire post-PIA privatization.
In March, PIA was converted into a holding company whose operations are now limited to commercial debt payments, government loan repayments totaling over 650 billion rupees ($2.34 billion) out of the carrier's 825 billion rupees ($3 billion) total debt. PIA's major assets, including aircraft and airport rights, will be auctioned.
PIA's losses since 2012 amount to $7.1 billion. Owing to inadequate state funding, the government opted to privatize the carrier in October 2023.
PIA's fleet comprises 34 aircraft, of which 19 are operational. 15 planes are leased at $2 million per month.
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Based on materials from TASS