By Ariba Shahid
KARACHI, Dec 24 – Pakistan International Airlines (PIA) is expected to be run by a new owner from April next year and receive fresh capital under a deal to privatise the flag carrier, the country’s privatisation chief said on Wednesday.
A consortium headed by the Arif Habib Corporation emerged as the top bidder in a live-televised auction for a 75% stake in PIA on Tuesday, marking a breakthrough for the government’s long-delayed privatisation of the carrier.
The Arif Habib consortium offered 135 billion rupees ($482.14 million), surpassing a government reserve price of 100 billion rupees, in a sharp turnaround from last year’s failed sale attempt.
Muhammad Ali, the privatisation adviser to the prime minister, told Reuters in an online interview that the state expects a new owner to be running the airline by April, subject to approvals.
The process now moves to final approvals by the Privatisation Commission board and the cabinet, expected within days, with contract signing likely within two weeks and financial close after a 90-day period to meet regulatory and legal conditions.
Ali said the government would receive about 10 billion rupees in cash upfront and retain a 25% stake valued at around 45 billion rupees.
The deal was structured to inject fresh capital into the airline rather than simply transfer ownership, he said. “We did not want a situation where the government sells the airline, takes its money and the company still collapses,” Ali said.
($1 = 280.0000 Pakistani rupees)
(Reporting by Ariba Shahid in Karachi; Editing by Muralikumar Anantharaman)
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