ISLAMABAD: The Privatization Commission Board has approved the eligibility criteria for privatization of PIA.
For the PIA auction, the value of the bidder has been declared to be at least 30 billion rupees (100 million dollars). In this regard, a pre-qualification committee has also been established. It is given in the board meeting.
It should be noted that the government has invited bids for the auction of 51 percent shares of PIA while the last date for submission of qualification statement has been fixed on May 3.
According to the eligibility criteria issued by the committee, the bidder should have 30 billion rupees (100 million dollars) based on the latest financial accounts, in case of a consortium, the total net worth of the consortium should be 30 billion rupees (100 million dollars). ) while the value of the lead bidder should be 8 billion rupees ($25 million).
The bidding consortium must also demonstrate that they have a total annual revenue of 200 billion rupees ($700 million) as a non-airline enterprise.
It should be noted that the government currently holds 96 percent of PIA’s shares, and the government wants to sell PIA by June this year.
Under the Pakistan Civil Aviation Act, no foreign airline can acquire a majority stake in a Pakistani airline, for which foreign investors must partner with local investors.