KP govt offers to buy PIA stake after national airline sale hits snag

The Khyber Pakhtunkhwa government on Friday showed its “earnest interest” in participating in the bidding process for the sale of Pakistan International Airlines (PIA) as the Chief Minister Ali Amin Gandapur-led provincial government wanted to retain the national flag carrier within the national fold.

The development came only a day after the final bidding process for the privatisation of PIA attracted just one bid of Rs10 billion for a 60% stake in the national flag carrier.

The government had pre-qualified six groups in June, but only real-estate development company participated in the bidding process, placing a bid that is below the government-set minimum price of Rs85 billion.

In a letter to Privatisation Minister Abdul Aleem Khan on Friday, the KP’s Board of Investment and Trade (BOIT) stated: “On behalf of the chief minister/chairman and the people of KPK, we would like to express our earnest interest in participating in the bidding process for the sale of PIA.”

The BOIT urged the authorities concerned that its proposal be considered as a viable option to retain the loss-making PIA within a provincial government structure, preserving national flag carrier’s legacy and aligning with the public’s interest in maintaining national assets.

“This letter serves as our formal intent to position the government of KP as a competitive bidder in this strategic acquisition.”

It further said that as Pakistan's national flag carrier, PIA represents a critical asset for the nation, symbolising our national identity and pride.

“Recognising the importance of retaining PIA within the national fold, the chief minister has directed us to actively pursue this acquisition to ensure the airline remains under the control of the Government of Pakistan rather than transferring to any private or foreign-backed entity.”

In line with this commitment, the provincial body said that they were prepared to offer a bid that will surpass the current highest offer of Rs10 billion by Blue World Consortium, ensuring a strong and competitive position within this process.

The KP-BOIT told the minister that they would be honoured, if afforded, an immediate opportunity to meet with his team to present their proposal in detail, discuss their strategic vision for PIA, and elaborate on their capacity to meet and exceed the highest bids.

“We look forward to your positive response and the opportunity to serve Pakistan in this significant undertaking,” read the letter.

Prime Minister Shehbaz Sharif's administration is looking to offload a 51-100% stake in debt-ridden airline to raise funds and reform bleeding state-owned enterprises as envisaged under a $7 billion International Monetary Fund (IMF) programme.