Islamabad: Privatisation of Pakistan International Airlines (PIA) has once again hit snags after six bidding companies demanded 100 percent share ownership instead of previously discussed 60 percent.

Concerns have also been raised regarding employee contracts, which propose three-year tenure without pension benefits. PIA sources indicate that Privatisation Commission is struggling to address these concerns, causing delays in bidding process.

Initially scheduled for October 1, bidding date was moved to October 30. However, further issues have since arisen, leaving privatisation initiative in jeopardy. Government is resolute in not granting 100 percent shares to bidding companies.

Initially, discussions focused on offering 60 percent shares, which has now shifted to 75 percent. Intention is to secure agreement from companies on 75 percent share offer. If they do not comply, PIA privatisation will be postponed. Effectiveness of Privatisation Commission in resolving raised objections remains to be seen.

On other hand, officials from Privatisation Commission stated that no new concerns have been presented by bidding companies. Should any new issues arise, they will be addressed accordingly.

As of now, final bidding for PIA has not occurred and no conclusions can be drawn until process is complete. PIA employees and officers also face significant challenges related to airline’s privatisation. Concerns loom over future of employees if acquiring company does not provide contracts longer than three years and fails to offer pension and other benefits.

Furthermore, bidding companies assert that they would need to invest between $ 500 million and $ 600 million, contingent on receiving 100 percent ownership. Most of PIA’s aircraft are currently leased and outdated, resulting in high operational costs.

Published in The Daily National Courier, October, 11 2024

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