Pakistan has announced a delay in the deadline for companies to express interest in acquiring Pakistan International Airlines (PIA), the country's national carrier. The new deadline is set for May 18th, according to a statement released by Abdul Aleem Khan, the Minister for Investment and Privatisation. This extension comes just a day before the initial deadline was due.
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The privatization minister revealed that ten companies had already expressed interest in purchasing PIA. The Privatisation Commission Board, which Khan leads, approved the deadline extension based on requests from these potential buyers. Pakistan's government is seeking to sell a controlling stake, ranging from 51% to 100%, in the national airline. This move is part of a broader economic reform program encouraged by the International Monetary Fund (IMF). The airline has been struggling financially and the government hopes that privatization will improve its efficiency and profitability.
Selling a national asset like PIA is a politically sensitive decision. Past administrations have avoided such a move due to its potential unpopularity. However, successfully privatizing PIA is seen as a crucial step for Pakistan to secure further financial assistance from the IMF. The additional funds are vital for the cash-strapped nation.
The extension of the deadline suggests that the government is willing to give potential buyers more time to conduct due diligence and prepare their bids. This could be an indication that Pakistan is keen to attract strong offers for its national airline. Whether this strategy will translate into a successful privatization process and much-needed economic benefits for Pakistan remains to be seen.