Government Rejects Rs10 Billion Bid for PIA, Seeks Better Offer
The government declines Blue World City’s Rs10 billion offer for a 60% stake in PIA, seeking a bid closer to its Rs85 billion target. The issue is now with the Cabinet Committee for further review.
The Privatization Commission's board has turned down a Rs10 billion offer from Blue World City, the only bidder for a 60% share in Pakistan International Airlines (PIA). This bid fell short of the government’s minimum price of Rs85 billion. Now, the board has sent the matter to the Cabinet Committee on Privatization for further review, showing the government’s intent to secure a better offer.
The privatization of PIA has been a government goal, aiming to sell 60% of the airline’s shares. However, only one bidder participated, highlighting the challenge of finding suitable investors willing to meet the minimum price.
- Bid Rejection: Rs10 billion bid refused as it was below the minimum price.
- Cabinet Review: Issue now with the Cabinet Committee on Privatization for more options.
- Challenges in Bidding: Only one bidder, emphasizing the difficulty in finding partners.
- Minimum Price Target: Government’s set price is Rs85 billion, higher than the rejected offer.
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