ISLAMABAD: The final bidding process for the privatization of Pakistan International Airlines (PIA) saw only one bid of 10 billion Pakistani rupees ($36 million) for a 60% stake, according to the Privatization Ministry.
The Privatization Commission, however, described the Blue World Consortium’s offer as significantly below the reference price of 85 billion rupees and instructed the consortium to match this price within half an hour. The bid was opened at around 6:30 PM at a local hotel.
The Cabinet Committee on Privatization (CCoP) deemed the bid inadequate and granted Blue World Consortium a short window to revise its offer. If the consortium fails to meet the official reference price, the privatization process for PIA will be cancelled.
Earlier in the day, Blue World Consortium submitted their sealed bid, showing interest in acquiring 60% of PIA shares. The entire bidding process, which had started with six bidders, culminated in this single bid, which was far below the reserved price set by the Privatization Commission.
The minimum reference price for PIA was established at 85 billion rupees, following approval from the Cabinet Committee on Privatization. The Privatization Commission board was scheduled to meet at 2 PM to discuss the bid, with a subsequent meeting of the CCoP to follow.
After submitting the bid, Blue World Group chief Chaudhry Saad Nazir expressed confidence in revamping PIA, stating that they would implement modern management practices to restore the airline’s reputation. He asserted that, if successful, the consortium could transform PIA into a profitable entity within six months.
Amir Mahmood, CEO of Allegiant Services and advisor for the PIA transaction, echoed this sentiment, highlighting the importance of the transaction and its potential to attract further investment in Pakistan.
