ISLAMABAD: The final bidding process for the privatization of Pakistan International Airlines (PIA) resulted in only one bid of 10 billion Pakistani rupees ($36 million) for a 60% stake, according to the Privatisation Ministry.
The Privatization Commission described the Blue World Consortium’s offer as significantly below the reference price of 85 billion rupees and instructed the consortium to match this price within half an hour. The bid was publicly opened around 6:30 PM at a local hotel.
The Cabinet Committee on Privatization (CCoP) found the bid insufficient and granted Blue World Consortium a limited timeframe to revise their offer. If the consortium does not meet the official reference price, the privatization process for PIA will be canceled.
Earlier in the day, Blue World Consortium submitted a sealed bid expressing interest in acquiring 60% of PIA shares. The bidding process, which initially included six bidders, ended with this single offer, which fell far below the reserved price established by the Privatization Commission.
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The minimum reference price for PIA was set at 85 billion rupees after receiving approval from the Cabinet Committee on Privatization. The Privatization Commission board was scheduled to meet at 2 PM to discuss the bid, followed by a meeting of the CCoP.
After submitting the bid, Blue World Group chief Chaudhry Saad Nazir expressed confidence in revitalizing PIA, stating that they would implement modern management practices to restore the airline’s reputation. He emphasized that, if successful, the consortium could turn PIA into a profitable entity within six months.
Amir Mahmood, CEO of Allegiant Services and advisor for the PIA transaction, supported this view, highlighting the significance of the transaction and its potential to attract further investment in Pakistan.
