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Pakistan pushes back deadline for expressions of interest to buy national airline

Published 05/02/2024, 01:42 PM
Updated 05/02/2024, 05:30 PM
© Reuters. View of a Pakistan International Airlines (PIA) passengers plane, taken through a glass panel, at the Allama Iqbal International Airpor in Lahore, Pakistan January 29, 2024. REUTERS/Akhtar Soomro/File Photo

ISLAMABAD (Reuters) -Pakistan will push back the deadline for companies to express interest in buying national carrier Pakistan International Airlines to May 18, the country's privatisation minister said on Thursday.

The extension, announced in a statement by Minister for Investment and Privatisation Abdul Aleem Khan, came a day before the expressions of interest had originally been due. He said 10 companies had already expressed an interest.

"The Board accorded approval for extension in the date for submission of interests on the request of interested parties," he said, referring to the Privatisation Commission Board he leads.

Pakistani tycoon Arif Habib and aviation-based company Gerry's Group were among the 10 bidders looking to buy a majority stake in Pakistan International Airlines, Bloomberg News reported on Friday.

Arif Habib, Pakistan International Airlines and Gerry's Group did not immediately respond to a Reuters request for comment.

© Reuters. View of a Pakistan International Airlines (PIA) passengers plane, taken through a glass panel, at the Allama Iqbal International Airpor in Lahore, Pakistan January 29, 2024. REUTERS/Akhtar Soomro/File Photo

Pakistan's government has previously said it was putting on the block a stake of between 51% and 100% in the loss-making airline as part of reforms urged by the International Monetary Fund.

The disposal of the flag carrier is a step that past elected governments have steered away from as it is likely to be highly unpopular, but progress on the privatisation will help cash-strapped Pakistan pursue further funding talks with the IMF.

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