PIA receives only Rs10bn bid for stake from lone bidder

The Pakistan International Airlines (PIA) has received a bid of Rs10 billion for a stake against the minimum price of Rs85 billion set by the federal cabinet. The government is looking to offload a 51-100% stake in the debt-ridden airline to raise funds and reform state-owned enterprises as part of an IMF program. Only one bidder, Blue World City, submitted final documents for the bidding process. Concerns have been raised about the government’s ability to honor agreements and provide policy continuity, especially with a new government potentially coming in. Potential bidders are also concerned about inconsistent government communication, unattractive terms, taxes in the sector, and PIA’s legacy issues and reputation.