- Four consortia are entering the final stage of negotiations for the PIA sale.
- Cabinet approval of the PIA reserve price is expected soon.
- The panel recommends five years of job security for PIA employees.
The government plans to hold the final bid for Pakistan International Airlines (PIA) in mid-December, the Privatization Department Secretary told the National Assembly Standing Committee on Wednesday.
Briefing the panel headed by MNA Farooq Sattar, the Secretary said that four pre-qualified consortia are currently in the final stage of negotiations on commercial terms, The news reported.
He said negotiations are underway with the pre-qualified bidders on the share purchase and shareholder agreements. Negotiations on advance bids have continued for the past three days, while approval of the reserve price will be sought from the federal cabinet, the secretary said.
In early July, the Privatization Commission Board prequalified four bidders – Fauji Fertilizer Company Ltd, Air Blue (Pvt) Ltd, a consortium of Lucky Cement, Hub Power Holdings, Kohat Cement and Metro Ventures and a consortium led by Arif Habib Corporation with Fatima Fertiliser, City Schools and Lake City Holdings. On November 7, the board approved the inclusion of AKD Group Holdings (Pvt) Ltd in the Arif Habib-led consortium.
During the meeting, Farooq Sattar pressed the government to ensure strong job protection for airline employees and transparency in the sales process. Notably, the earlier reserve price for PIA was set at Rs85 billion. “The airline must be sold, but employee protection must be guaranteed,” he said.
The committee recommended at least five years of job protection for PIA employees and full guarantee for pensioners.
Officials said PIA currently operates 18 aircraft and will need 35-38 more for sustainable operations, with future owners committed to retaining experienced employees.
The additional secretary of the Power Division revealed for the first time to the lawmakers that the government is considering transferring DISCOs under long-term concession agreements instead of full privatization on the Turkish model.
These agreements will leave management responsibilities to private entities for a potential period of up to 25 years, allowing for investment and infrastructure improvements.
In the first phase, the government plans to privatize Islamabad, Gujranwala and Faisalabad power utilities, but the issuance of their RFPs has been delayed and officials say the process should reach an advanced stage by March.
The Power Division told the committee that all three-phase meters nationwide will be replaced with AMI meters by December 2026 to curb electricity theft. He said 1.5 million AMI meters have been installed in the Iesco region, reducing power loss by 2%.
Addressing the 33-year delay in Pakistan Engineering Company’s (Peco’s) privatisation, Farooq Sattar asked why it remained stalled. Officials said the prime minister has placed Peco under the Special Investment Facilitation Council (SIFC).
The committee directed a formal progress report from SIFC, while the privatization department noted that it responds to council inquiries rather than initiating them. The committee was also briefed on the privatization of the Roosevelt Hotel in New York. Separately, officials from the Ministry of Industry and Production confirmed that all outstanding dues of Utility Store employees have been cleared.
