Pakistan’s government airline PIA has been auctioned. Arif Habib Group bought it for Rs 4320 crore. The government sold 75% stake, which is Rs 1320 crore more than the estimate. PM Shahbaz Sharif called it the biggest privatization of Pakistan.
Pakistan Airline PIA Auctioned: Pakistan’s government airline PIA has finally been auctioned. Arif Habib Group has bought it for Rs 4320 crore. Let us tell you that the Government of Pakistan had estimated to get Rs 3200 crore from the sale of the airline, however, it got more than expected i.e. Rs 1320 crore. Open bidding round was going on for PIA between Arif Habib Group and Lucky Cement Group. During this period, Lucky Cement Group bid a maximum of Rs 4288 crore, while Arif Habib Group won it by bidding Rs 4320 crore.
Government sold 75% stake in PIA
Let us tell you that Pakistan, which is struggling with poverty, has sold 75% stake of PIA. Pakistan PM Shahbaz Sharif said that this deal is the biggest privatization in the history of Pakistan. It is expected that this will benefit the government financially and the airlines will get a new life. Let us tell you that PIA has been running in huge losses for the last several years and also has a lot of debt. Even in 2024, the Pakistan government had tried to sell it, but the deal could not be done due to low bid. In fact, the Pakistan government last year had set the minimum price for 60% stake in the airline at $305 million. However, a bid of only $36 million was received from real estate developer Blue World City. Blue World City had clearly refused to increase the bid citing the poor condition of PIA.
Know why Pakistan is selling loss making companies?
Let us tell you that due to Pakistan’s $7 billion loan agreement with the International Monetary Fund (IMF), the Pakistan government will have to sell many of its loss-making government companies by 2029. These also include companies from energy, finance and retail sectors. Many government companies of Pakistan are running in losses of billions of dollars due to poor management and corruption. Many times the government has to give a bailout package to keep them running.