Pakistan TV

ISLAMABAD: Minister of State for Finance, Revenue and Railways Bilal Azhar Kayani said on Thursday that, following the successful privatisation of Pakistan International Airlines (PIA), the next phase would focus on electricity distribution companies, including IESCO, GEPCO, and FESCO, as the government remains firmly committed to sustainable and inclusive growth.&nbsp;Speaking in an exclusive interview with Pakistan TV, Kayani described the successful privatisation of Pakistan International Airlines (PIA) as a landmark achievement after decades of failed attempts, saying it would reduce the burden of loss-making state-owned enterprises on the national exchequer and help transform PIA into a profitable, world-class airline.&nbsp;&ldquo;The momentum created by the PIA deal will help generate greater investor and advisory interest going forward for the privatization program,&rdquo; he said.&nbsp;&ldquo;The next phase of privatisation is focused on electricity distribution companies, including IESCO, GEPCO and FESCO,&rdquo; Kayani added.&nbsp;The minister said Pakistan&rsquo;s economy has undergone a significant turnaround over the past two years, shifting from crisis management to macroeconomic stabilisation.&nbsp;He added that the government assumed office in February 2024, at a time when inflation was hovering between 20 and 25 percent and Pakistan had just entered a new IMF programme.&nbsp;&ldquo;Today, less than two years on, we have not only successfully completed IMF reviews but also restored economic confidence,&rdquo; he said.&nbsp;The minister highlighted key achievements, including an increase in the tax-to-GDP ratio from 8.8 percent to 10.2 percent within a year, a notable rise in foreign exchange reserves, and a significant jump in workers&rsquo; remittances. &ldquo;Pakistan&rsquo;s improving outlook has been recognised globally, with all three major rating agencies, Standard &amp; Poor&rsquo;s, Moody&rsquo;s and Fitch, upgrading the country&rsquo;s ratings outlook,&rdquo; he added.&nbsp;Kayani credited Prime Minister Shehbaz Sharif&rsquo;s direct oversight of reforms at the Federal Board of Revenue (FBR) for improved tax collection.&nbsp;&ldquo;Initiatives such as Faceless Customs, digitisation of tax systems, and enforcement measures have reduced leakages and enhanced efficiency, earning recognition from the IMF, which showcased Pakistan&rsquo;s reforms as a case study during its annual meetings.&rdquo;&nbsp;Looking ahead, Kayani said the government&rsquo;s priority is shifting from stabilisation to quality GDP growth driven by exports and private-sector investment. He stressed the importance of inclusive growth that benefits lower-income groups and expands employment opportunities.&nbsp;&ldquo;To this end, the government is engaging closely with the private sector through working groups and policy consultations,&rdquo; he added.&nbsp;He also pointed to record-breaking performance at the Pakistan Stock Exchange as a reflection of growing investor confidence, while acknowledging it as one of several indicators of economic health. Additionally, Kayani praised the Special Investment Facilitation Council (SIFC) for improving ease of doing business by providing a one-window platform for domestic and foreign investors.&nbsp;The minister said reduced inflation, lower policy rates and a focus on export diversification, including IT and value-added agriculture, would help ensure sustainable economic growth in the years ahead.

The Experts Corner

After PIA’s privatization, Pakistan plans to privatize power DISCOs, citing economic stabilisation, IMF-backed reforms, improved ratings, and rising revenues.

After PIA success, government to privatise electricity distribution companies: Bilal Kiyani   

Pakistan TV Satellite

ISLAMABAD: Arif Habib, the founder of Arif Habib Group, has said Pakistan International Airlines&rsquo; (PIA) revival will focus on leveraging talented employees, international expertise, and strategic growth to restore the airline&rsquo;s success. Talking exclusively to Pakistan TV, Arif Habib said the revival of PIA represents a broader success for Pakistan, expressing confidence that the national carrier will regain its former stature. Arif Habib Consortium had won the bid by offering Rs135 billion for the 75% shares of Pakistan International Airlines Corporation Limited. The runner-up was Lucky Cement, which offered Rs134 billion but was outbid by the Arif Habib Consortium.&nbsp; The third group was the private airline Airblue, which exited in the first round after its offer of Rs26.5 billion fell below the reference price of Rs100 billion.&nbsp; Arif Habib recalled that PIA was once among the world&rsquo;s leading airlines and said the new management is committed to restoring its past glory. &ldquo;We have resolved to bring the airline back to its past success by fully utilising the potential of its employees and inducting new aircraft,&rdquo; Arif Habib said.<div class="fr-embed"><div class="twitter-tweet twitter-tweet-rendered" style="display: flex; max-width: 550px; width: 100%; margin-top: 10px; margin-bottom: 10px;"><iframe id="twitter-widget-0" scrolling="no" frameborder="0" allowtransparency="true" allowfullscreen="true" style="position: static; visibility: visible; width: 550px; height: 647px; display: block; flex-grow: 1;" title="X Post" src="https://platform.twitter.com/embed/Tweet.html?dnt=false&embedId=twitter-widget-0&features=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%3D%3D&frame=false&hideCard=false&hideThread=false&id=2003497952954966521&lang=en&origin=https%3A%2F%2Fmain.d1wrm1qseko1cp.amplifyapp.com%2Farticles%2F&sessionId=ede63cbbf93057ac7ee3deab83b0fd81dcb40a16&theme=light&widgetsVersion=2615f7e52b7e0%3A1702314776716&width=550px" data-tweet-id="2003497952954966521"></iframe></div>He said competent and high-performing employees would be given greater opportunities, adding that Pakistan had a large pool of talented professionals and the airline would benefit from them.</div> Referring to past experiences, he said privatisation efforts had previously led to additional employment, as when a business grew, it required more staff. He also said international advisers would be engaged to support the turnaround process to ensure sustainable growth and long-term success for the airline.

SAT News Desk

Says airline's competent and high-performing employees would be given greater opportunities.

PIA revival to ride on talent, global expertise and strategic growth: Arif Habib

Web Desk

ISLAMABAD:&nbsp;Pakistan concluded the sale of a controlling stake in its national carrier,&nbsp;Pakistan International Airlines (PIA),&nbsp;on Tuesday, finalizing a deal worth Rs135 billion ($485 million) following a televised auction in the capital. The Arif Habib Consortium submitted the highest offer for the 75% stake in the PIA, surpassing a bid from a group led by Lucky Cement Limited. The final price exceeded the government&#39;s reference price of Rs100 billion ($357 million) established earlier in the day. Finance Minister Muhammad Aurangzeb said the transaction would help integrate Pakistani institutions into the global economy. &ldquo;We need to stop the bleeding and losses, but more importantly, our institutions need to be part of the comity of nations, and we will take them there,&rdquo; Aurangzeb said at the ceremony. &ldquo;The fact that they have stepped up is a doubtless sign that anyone who is the successful bidder will take it not only to where we were, but where we need to be.&rdquo; The auction began with sealed offers from three pre-qualified groups: Arif Habib, Lucky Cement, and Airblue. In the first round, the Arif Habib group offered Rs115 billion ($410.7 million), while the Lucky Cement group offered Rs101.5 billion ($362.5 million). The Airblue consortium submitted a bid of Rs26.5 billion ($94.6 million)and was eliminated for falling below the minimum reference price. A second round of bidding followed between the two remaining groups, starting with a base price of Rs115 billion ($357 million)&nbsp;and a minimum increment of Rs250 million ($892,782). Lucky Cement raised its offer to Rs134 billion ($478.5 million) before the Arif Habib group submitted the final bid of Rs135 billion. Lucky Cement did not submit a further counteroffer. Privatization Minister Muhammad Ali said the government aimed for transparency by engaging multiple bidders. He stated that 92.5% of the sale proceeds will be reinvested into the airline to fund operations and fleet expansion. The remaining 7.5% will go to the government exchequer. The terms of the sale require the new owners to expand the airline&#39;s fleet from 18 operational aircraft to at least 30 within 3-4 years. The government retains a 25% stake in the carrier, which the winning consortium has the option to purchase within 90 days. The sale is part of an economic reform agenda linked to a $7 billion loan program from the International Monetary Fund, which mandates the privatization of loss-making state-owned enterprises.&nbsp;The government previously transferred approximately Rs600 billion ($2.14 billion) of the airline&rsquo;s debt to a holding company to facilitate the sale. This auction follows an unsuccessful attempt to sell the airline in November 2024, when a sole bidder offered Rs10 billion ($35.7 million) against a reference price of Rs85 billion ($303.5 million). The final bid requires formal approval from the Cabinet Committee on Privatization.

Economy

Arif Habib Consortium wins 75% stake in PIA with Rs135 billion ($482 million) bid, exceeding government reference price.

PIA privatization ends with $482 million winning bid

ISLAMABAD: Pakistan on Tuesday moved closer to privatizing its national flag carrier as the bidding process for Pakistan International Airlines Corporation Limited (PIACL) entered its decisive stage, marking one of the government&rsquo;s most significant state-owned enterprise reform initiatives.&nbsp;Three consortia, led by AirBlue, Arif Habib Private Limited, and Lucky Cement, are competing to acquire a 75% stake in the airline. The process follows Fauji Fertilizer Company (FFC) withdrawing from the bidding race, though FFC retains the option to join the winning consortium at a later stage.&nbsp;According to privatization minister Muhammad Ali, the two unsuccessful bidders will be excluded from any future role in the airline&rsquo;s management. He explained that losing bidders would have no right to join the winning bidder, and only groups that were not parties to the auction would be able to enter the new management.&nbsp;To safeguard the integrity of the privatization, the government has introduced a key condition preventing unsuccessful bidders from participating in the airline&rsquo;s future management. Privatization minister Ali said this measure aims to ensure transparency and avoid post-auction arrangements that could undermine competition.&nbsp;Under the announced schedule, sealed bids were submitted to the Privatization Commission at 10:30 a.m., while the bids are set to be opened at 3:30 p.m. in a formal ceremony attended by the bidders. The reference price for the transaction will be approved by the Privatization Commission Board and the Cabinet Committee on Privatization only after bids are received.&nbsp;The entire bidding process is being broadcast live on television and digital platforms to reinforce transparency.&nbsp;Ahead of the auction, reports emerged of informal discussions between some bidding groups regarding a potential shared stake. However, Lucky Cement Chairman Muhammad Ali Tabba and government officials clarified that these interactions were private in nature and not facilitated by the government, and that they had no impact on the bidding process.&nbsp;Officials remain confident that the current auction will avoid the shortcomings of the previous privatization attempt, when a single bidder offered Rs10 billion for a 60% stake, far below the reference price of Rs85 billion, leading to the cancellation of the sale.&nbsp;The government views the privatization of PIA as a critical step towards improving operational efficiency, reducing fiscal burden, and attracting long-term private investment into Pakistan&rsquo;s aviation sector.

Three bidders, Lucky Cement, Arif Habib Pvt Ltd, and AirBlue, are in the race to acquire a 75% stake in the airline.

Articles tagged with "PIA privatization"

After PIA success, government to privatise electricity distribution companies: Bilal Kiyani

PIA revival to ride on talent, global expertise and strategic growth: Arif Habib

PIA privatization ends with $482 million winning bid

Privatization process of Pakistan International Airlines kicks off