An overseas Pakistani business consortium, Al-Nahang Group, has made a substantial offer to acquire Pakistan International Airlines (PIA) for Rs125 billion. In addition to the purchase bid, the group has committed to clearing the national airline’s extensive liabilities, estimated at Rs250 billion. This proposal, submitted to the ministries of privatization, aviation, and defense, highlights the group’s interest in revitalizing PIA and enhancing its international competitiveness.
According to sources, Al-Nahang Group’s bid was submitted via email and includes several assurances aimed at protecting and improving the airline’s workforce. Notably, the group has pledged not to implement any layoffs. Moreover, they have proposed a salary increase for employees, ranging from 30 to 100 percent annually, aimed at improving workforce morale and performance.
The consortium’s comprehensive business plan focuses on modernizing PIA’s fleet and transforming the airline into a maintenance hub for other regional airlines. This strategic positioning could help PIA regain prominence in the global aviation industry, attracting revenue through fleet services and maintenance support for other carriers in the region. If approved, this vision could strengthen Pakistan’s aviation sector, aligning with international standards and enabling PIA to compete effectively.
The bid comes amid calls from the International Monetary Fund (IMF) urging Pakistan to privatize loss-making state-owned entities like PIA. IMF officials have indicated that delays in privatizing PIA could potentially hold back the next installment of the IMF loan program. This financial assistance is crucial for Pakistan, especially in its current economic situation, where state-owned enterprise reforms are seen as essential for sustainable economic growth.
The Al-Nahang Group’s offer follows an unsuccessful privatization attempt last month. The Pakistani government had initially proposed selling 60 percent of PIA’s shares for Rs85 billion, but the sole bid from Blue World City Consortium amounted to just Rs10 billion. Due to this low offer, the government halted the privatization process. Blue World City subsequently revised its bid, suggesting it might be willing to pay between Rs30 billion and Rs85 billion, yet the revised amount still fell short of the government’s expectations.
Privatization Minister Abdul Aleem Khan has previously commented on the privatization process, emphasizing that his role is to facilitate the sale of PIA rather than manage its restructuring. He highlighted the importance of finding a buyer capable of securing the airline’s future while addressing its financial challenges.
The Al-Nahang Group’s proposal offers a potential breakthrough for PIA, promising financial stabilization and operational enhancements. If accepted, this acquisition could breathe new life into Pakistan’s struggling aviation sector, offering a path toward a competitive and profitable national airline.
