Islamabad: A National Assembly standing committee was told by PIA management on Monday that this time four major parties including Air Blue and Fauji Foundation were in the run to buy the national airline. In its first attempt made a few months ago, Privatisation Commission had got disappointing response when the only bidder gave a very less offer of Rs 10 billion to acquire majority shares of the national carrier.
The 10th meeting of the Standing Committee on Privatization convened today under the Chairmanship of Mr. Muhammad Farooq Sattar, Member National Assembly, at 02:00 PM in Committee Room No.7, situated on the 4th Floor of Parliament House, Islamabad. The meeting was marked by several key decisions, discussions, and approvals pertaining to the privatization policies and strategies being pursued by the Government of Pakistan. It drew participation from a wide array of parliamentary members, including representatives from both government and opposition benches, and senior officials from the Ministry of Privatization and Ministry of Finance. These engagements reflected the growing importance and scrutiny surrounding the privatization initiatives currently underway in the country.
A significant part of the meeting revolved around the Postal Life Insurance Company Limited (PLICL). The representative of the Ministry of Finance briefed the Committee on the financial support being extended to PLICL, confirming that a sum of PKR 3 billion had been approved for the company. It was further informed that an additional amount of PKR 3 billion would be provided in the third and fourth quarters of the current financial year. This funding allocation follows the direction of the Standing Committee and aims to ensure the financial stability and operational continuity of the company. PLICL is undergoing a strategic transformation as part of the broader privatization landscape, and the provision of this funding underscores the government’s commitment to maintaining service delivery while institutional restructuring is underway.
Deliberations also focused on Pakistan International Airlines Corporation Limited (PIACL), particularly the process of selecting and granting access to potential investors. The Committee was informed that the pre-qualification process had been completed, with four interested parties being shortlisted. The selected entities include both consortia and individual firms from a diverse range of sectors, indicating a healthy level of interest in the ongoing privatization effort.
The first shortlisted party is a consortium comprising Lucky Cement Limited, Hub Power Holdings Limited, Kohat Cement Company Limited, and Metro Ventures (Private) Limited. This group brings together experience in cement manufacturing, power generation, and investment management, signaling a strategic alignment towards infrastructure and industrial development.
The second shortlisted party is another consortium, this one consisting of Arif Habib Corporation Limited, Fatima Fertilizers Company Limited, The City School (Private) Limited, and Lake City Holdings (Private) Limited. This consortium is notable for its cross-sector representation, including finance, education, agriculture, and real estate, suggesting a broad investment portfolio and diversified interest in the aviation sector.
The third party is the Fauji Fertilizer Company Limited, a major player in Pakistan’s fertilizer sector with a history of involvement in diversified ventures. The fourth shortlisted party is Air Blue, one of the prominent private airlines operating in Pakistan. These entities will be given access to the virtual data room of PIACL, which will allow them to conduct detailed due diligence on the corporation’s financials, operations, and strategic outlook. This step marks the commencement of a critical phase in the privatization of PIACL, a state-owned entity long under financial stress and seeking revival through private-sector participation.
The Standing Committee also deliberated and voted on legislative matters. One of the pivotal moments of the session was the passage of the Privatization Commission (Amendment) Bill, 2024. This government bill was passed by a majority vote, signifying the Committee’s endorsement of the proposed legal framework intended to update, streamline, and possibly expedite the privatization processes governed by the Commission. The passage of the bill within the committee paves the way for its presentation in the National Assembly for broader legislative scrutiny and eventual enactment. The amendment is likely to include provisions that enhance transparency, accountability, and procedural efficiency within the privatization framework, though specific details were not publicly disclosed during the Committee session.
The meeting witnessed attendance from a diverse cross-section of the National Assembly members, representing various political affiliations and regions of Pakistan. Among those present were Mr. Anwar Ul Haq Chaudhary, Mr. Chaudhry Mehmood Bashir Virk, Mr. Abdul Qadir Khan, Ms. Saba Sadiq, Mr. Nazir Ahmed Bhugio, Mr. Nauman Islam Shaikh, Ms. Sehar Kamran, Mr. Arshad Abdullah Vohra, Mr. Sanjay Pirwani, Mr. Muhammad Saad Ullah, Mr. Mehboob Shah, Mr. Zulfiqar Ali, and Mr. Moulana Abdul Ghafoor Haideri. Their participation added depth to the deliberations and highlighted the multiparty oversight of the privatization initiatives.
In addition to parliamentary members, senior officials from the Ministry of Finance and the Ministry of Privatization were also present. Their inputs provided technical clarity on various agenda items and helped facilitate informed decision-making by the Committee members. The ministries’ representatives were instrumental in explaining the rationale behind the funding to PLICL, the criteria for pre-qualifying the PIACL bidders, and the implications of the proposed legislative amendments.
Throughout the session, emphasis was placed on the need for a transparent, inclusive, and economically beneficial privatization process. The Chairman, Mr. Muhammad Farooq Sattar, underscored the importance of protecting public interests while ensuring that state-owned enterprises become financially viable and operationally efficient through private investment and professional management. He also stressed the role of the Standing Committee in ensuring due diligence, accountability, and oversight of the entire privatization ecosystem.
In the case of PIACL, the decision to pre-qualify a mixture of industrial conglomerates, education sector investors, fertilizer giants, and an existing airline player marks a significant shift towards opening the aviation sector to competitive dynamics. The privatization of PIACL has long been a matter of public debate, with concerns often raised about job security, service continuity, and national interest. The Committee’s approach appears to be balanced—facilitating privatization while ensuring that adequate safeguards are in place.
Similarly, the funding to PLICL signals that the government is not pursuing a hasty exit from public sector enterprises without ensuring their stability during the transition. The approved funds are expected to be used for operational improvements, staff salaries, IT infrastructure upgrades, and preparation for potential investment or ownership changes. The disbursement, split across two quarters, also allows for periodic review of the company’s performance and adherence to reform milestones.
The passage of the Privatization Commission (Amendment) Bill, 2024, was a significant legislative milestone. Though the bill passed with a majority vote, it is expected to face robust debate in the National Assembly, especially from opposition members concerned about the strategic implications of privatization. The government, on the other hand, has reiterated its stance that privatization, when conducted transparently and efficiently, can lead to improved service delivery, economic growth, and reduction in fiscal burden.
The 10th meeting of the Standing Committee on Privatization thus marked a critical juncture in Pakistan’s ongoing economic reforms. With key decisions on PLICL funding, PIACL investor engagement, and legislative changes to the privatization framework, the Committee demonstrated its proactive role in steering the country’s privatization agenda. The presence and engagement of a broad spectrum of parliamentary members ensured a pluralistic oversight mechanism, enhancing the legitimacy and credibility of the Committee’s recommendations.