You are currently viewing PIA Privatization: $100 Million Net Worth Required for Potential Buyers
xr:d:DAF-pvc3C3o:46,j:18438199673030214,t:24040409

PIA Privatization: $100 Million Net Worth Required for Potential Buyers

ISLAMABAD (APP) – The Pakistani government has set stringent financial requirements for companies interested in acquiring a stake in the national airline, Pakistan International Airlines (PIA). The Privatization Commission has mandated that individual bidders must possess a minimum net worth of Rs. 30 billion (approx. $100 million) to be eligible for purchasing between 51% and 100% shares in PIA.

The decision was taken during a board meeting chaired by Privatization Minister Abdul Aleem Khan. In addition to approving the prequalification criteria, the board established a committee to oversee the vetting process for prospective bidders.

An invitation for the submission of Statements of Qualification has been issued, with May 3rd set as the deadline for interested investors to apply.

Read More: Pakistan International Airlines (PIA) Up for Grabs: Government Invites Bids for Privatization of Majority Stake

To attract potential buyers, the Privatization Commission has released an Expression of Interest along with a draft Request for Statement of Qualification (RSOQ). The financial criteria stipulate that consortiums bidding together must have a combined net worth of at least Rs. 30 billion, with the lead company holding a minimum net worth of Rs. 8 billion (approx. $25 million).

The stringent net worth requirements reflect the government’s commitment to ensuring the national carrier is acquired by financially robust entities capable of reviving PIA’s operations and profitability.

Analysts view the privatization of PIA as a crucial step towards reducing the fiscal burden on the national exchequer and unlocking the airline’s potential through strategic investment and professional management.

Leave a Reply