Pakistan International Airlines (PIA) has encountered another hurdle in its ongoing privatization process after Fauji Fertilizer Company, the frontrunner for acquiring a 75% stake, withdrew at the last moment. The company reportedly pulled out as the deadline to deposit the required funds approached, leaving the remaining three qualified bidders to continue in the race. Sealed bids from the remaining participants are now scheduled to be submitted by December 23.
The privatization of PIA forms part of Pakistan’s broader reform agenda recommended by the International Monetary Fund (IMF) to stabilize the country’s struggling economy. The government had committed to these reforms as a condition for receiving IMF financial assistance, with the sale of its state-owned airline being a key measure to attract strategic investment and enhance operational efficiency.
Initially, four companies had qualified to participate in the bidding process, with Fauji Fertilizer Company emerging as the leading contender. Its withdrawal underscores the challenges Pakistan faces in implementing the privatization plan, and authorities are now focused on ensuring the remaining bidders complete the process within the stipulated timeframe.