Aviation

UAE and Qatar in race for Pakistan’s privatisation deals

By Pramod Kumar

March 27, 2024, 5:06 AM

Pakistan aims to raise foreign exchange by selling PIA and outsourcing three airports to avoid a balance of payment crisis

Investors from the UAE, Qatar and Turkey have shown interest in Pakistan’s national airline and airports as the South Asian nation accelerates its privatisation programme.

Other investors are from Germany, France, Netherlands, Malaysia and local groups, ARY News, a Pakistani news channel, reported.

Defence and aviation minister Khawaja Muhammad Asif has discussed outsourcing airports and privatising Pakistan International Airlines (PIA).

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Islamabad aims to raise foreign exchange by selling the state-run airline and outsourcing three airports to avoid a balance of payment crisis.

The names of the investors were not given.

The board of PIA approved the airline’s privatisation and restructuring plan, The News International, an English daily news outlet, reported.

E&Y, a financial advisory firm, has been appointed by the government to prepare the plan for the loss-making airline, which had liabilities of Rs785 billion ($2.8 billion) and accumulated losses of Rs713 billion as of June last year.

The International Monetary Fund (IMF) has asked Islamabad to privatise the state-owned enterprises to revitalise its ailing economy.

Last week, the IMF agreed to release $1.1 billion of a $3 billion bailout package to Pakistan, saying the country will need more policy reforms to address deep-seated economic vulnerabilities.