The Senate Standing Committee on Privatization recently held an in-depth discussion regarding the privatization of Pakistan International Airlines (PIA). Officials from the Privatization Commission confirmed that the bidding process for PIA is set for October 31, pending approval from the federal cabinet.

Investors have requested an extension of the bidding deadline and revisions to several terms, including tax incentives, a reduction in the workforce, and clarification of PIA’s financial liabilities. Concerns were raised about PIA’s substantial Rs. 200 billion debt, employee pensions, and the condition of its aircraft fleet. Additionally, bidders are seeking a 76 percent stake in the airline, compared to the 60 percent initially offered by the federal government.

Government officials assured that employee salaries and pension liabilities would be safeguarded, and they expect the new management to retain the current workforce. The committee was informed that bidders are also seeking legal protection from existing lawsuits. Participants emphasized the importance of resolving issues related to PIA’s assets and employees before moving forward with privatization.

In addition to PIA, the committee discussed the privatization of power distribution companies (DISCOs). Officials from the Power Division indicated that the process of hiring a financial advisor for the DISCOs would commence soon.

The committee also briefly revisited the privatization of K-Electric, acknowledging that the company had not fulfilled its investment commitments. Officials noted that this time, only the distribution services of DISCOs would be privatized, while generation and transmission services would remain under federal government control.