Karachi: The privatization process of Pakistan International Airlines (PIA) is anticipated to be completed by the first week of October 2024. Arif Habib, Chairman of Arif Habib Group, confirmed the timeline during a presentation at Naya Nazimabad Gymkhana, outlining the steps and expectations for the airline’s transition to private ownership.

According to Zameen.Com, Habib expressed confidence that the bidding process for PIA would wrap up by early October next year. He noted that the new owner would be required to expand the airline’s fleet by at least 20 aircraft to boost operations and profitability. This expansion is seen as crucial for revitalizing the airline’s capabilities and market presence.

Habib also detailed the expected ownership structure, indicating that prospective buyers would aim for a 75% stake to ensure majority control. He clarified that under the privatization terms, the new owner would be restricted from reselling the airline for at least three years post-acquisition.

A significant challenge in the privatization is PIA’s substantial debt, amounting to PKR 800 billion. Habib explained that PKR 600 billion of this would be transferred to a holding company, while the buyer would assume the remaining PKR 200 billion. This debt includes obligations like tax liabilities and dues to the Civil Aviation Authority. Habib suggested that offering buyers an extended period for repayment could alleviate some financial pressures.

The completion of this privatization, expected by October 2024, is projected to usher in a transformative era for PIA, with improvements in operations, debt management, and employee relations aimed at steering the airline back to profitability and growth.