Government to hold final PIA bidding by mid-December, NA panel told

• Four consortia enter last-stage talks on PIA sale.
• Cabinet approval of PIA reserve price expected soon.
• Panel recommends five-year job security for PIA staff.

The government plans to hold the final bidding for Pakistan International Airlines (PIA) by mid-December, the Privatisation Division secretary told the National Assembly’s standing committee on Wednesday.

Briefing the panel chaired by MNA Farooq Sattar, the secretary said that four pre-qualified consortia are currently in the final stage of negotiations over commercial terms, The News reported. 

He said that talks are underway with the pre-qualified bidders on the share purchase and shareholders’ agreements. Pre-bid qualification talks have been continuing for the past three days, while approval of the reserve price will be sought from the federal cabinet, the secretary said.

In early July, the Privatisation Commission Board prequalified four bidders — Fauji Fertiliser Company Ltd, Air Blue (Pvt) Ltd, a consortium of Lucky Cement, Hub Power Holdings, Kohat Cement and Metro Ventures, and a consortium led by Arif Habib Corporation with Fatima Fertiliser, City Schools and Lake City Holdings. On November 7, the board approved the inclusion of AKD Group Holdings (Pvt) Ltd in the Arif Habib-led consortium.

During the meeting, Farooq Sattar pressed the government to ensure strong job protection for airline employees and transparency in the sale process. Notably, the previous reserve price for PIA was set at Rs85 billion. “The airline has to be sold, but employee protection must be guaranteed,” he said.

The committee recommended at least five years of job protection for PIA employees and full safeguards for pensioners.

Officials said PIA currently operates 18 aircraft and will need 35-38 more for sustainable operations, with future owners required to retain experienced staff.

The Additional Secretary of the Power Division for the first time disclosed to lawmakers that the government is considering the transfer of DISCOs under long-term concession agreements instead of full privatisation, following the Turkish model.

These agreements would entrust management responsibilities to private entities for a potential period of up to 25 years, allowing for investments and infrastructure enhancements.

In the first phase, the government plans to privatise Islamabad, Gujranwala and Faisalabad electric supply companies, but issuance of their RFPs has been delayed, with officials saying the process should reach an advanced stage by March.

The Power Division told the committee that all three-phase meters nationwide will be replaced with AMI meters by December 2026 to curb electricity theft. He said 1.5 million AMI meters have been installed in the Iesco region, cutting power losses by 2%.

Addressing the 33-year delay in Pakistan Engineering Company (Peco’s) privatisation, Farooq Sattar asked why it remained stalled. Officials said the prime minister has placed Peco under the Special Investment Facilitation Council (SIFC).

The committee directed a formal progress report from the SIFC, while the Privatisation Division noted that it responds to council queries rather than initiating them. The committee was also briefed on the privatisation of the Roosevelt Hotel in New York. Separately, officials from the Ministry of Industries and Production confirmed that all pending dues of Utility Stores employees have been cleared.