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Pakistan eyes final bidding for PIA by October, sale by year-end — privatization chief

Pakistan eyes final bidding for PIA by October, sale by year-end — privatization chief
Muhammad Ali, chairman of the Privatization Commission of Pakistan speaks during an interview with Arab News on June 23, 2024, in Islamabad, Pakistan. (AN Photo)
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Updated 24 June 2025

Pakistan eyes final bidding for PIA by October, sale by year-end — privatization chief

Pakistan eyes final bidding for PIA by October, sale by year-end — privatization chief
  • Muhammad Ali says local groups lead bidding now, but foreign firms could join later after turnaround
  • Government aims to retain minority stake in PIA to earn from future profits while giving private buyers full control

ISLAMABAD/ KARACHI: Pakistan plans to hold final bidding to sell its loss-making national airline by October and complete the sale by the end of this year, the country’s privatization czar said in an interview this week, in what would be Islamabad’s most serious effort yet to sell off Pakistan International Airlines (PIA) after decades of repeated failures and costly government bailouts.

The latest attempt comes as the government seeks to cut losses from state-owned firms that have drained the public purse and undermined economic stability for years. PIA, once a respected carrier in Asia, has been propped up by taxpayers for decades due to political interference, corruption and inefficiencies. Its privatization has also repeatedly collapsed amid union resistance, legal hurdles and low investor appetite.

Selling off unprofitable state companies has been a key demand of international lenders such as the International Monetary Fund (IMF), whose support is critical for Pakistan to avoid default and manage its ballooning debt.

Last week, five consortiums submitted expressions of interest for a 51–100 percent stake in PIA after the government restructured its balance sheet to make the deal more attractive. It has also scrapped the sales tax on leased aircraft and is providing limited protection from legal and tax claims. Around 80 percent of the airline’s debt has been transferred to the state.




Ground staff stand next to the Pakistan International Airline (PIA) aircraft ahead of its takeoff for Paris at the Islamabad International Airport on January 10, 2025, as EU authorities lift a four-year ban on the state airline. (AFP/ file)

“There are five expressions of interest from five different consortiums. Now we’ll be pre-qualifying them and all five may or may not qualify to go into the due diligence process,” Muhammad Ali, chairman of the Privatization Commission, told Arab News in an interview on Monday.

He said officials hoped to shortlist bidders by the end of June and open a data room in July.

“We are hoping that all the bidders will take roughly two months, 60 days time, for the due diligence and then we will enter into final discussions and negotiation of the terms and conditions of the transaction,” he said.

“So, we are hoping that sometime in September–October we should have the final bidding but in any case, before the end of the year we will wrap it up.”

WHY KEEP MINORITY SHAREHOLDING?

Pakistani state-owned enterprises post annual losses of more than Rs800 billion ($2.87 billion), and when subsidies, grants and other support are included, the burden swells beyond Rs1 trillion ($3.59 billion), Finance Minister Muhammad Aurangzeb told parliament while presenting the budget for fiscal year 2025–26 earlier this month.

PIA has been one of the government’s most costly liabilities, which has accumulated over $2.5 billion in losses in roughly a decade and been surviving on repeated bailouts that have weighed heavily on Pakistan’s strained budget. 

To attract buyers, Islamabad has moved PIA’s decades-old bank debt into a separate holding company, leaving a leaner core business with passenger, cargo and engineering operations, among others. 

“So, PIA, the aviation, the core company which we are privatizing, that doesn’t have that debt anymore,” Ali said. “So, after taking care of all of that, it will be a positive balance sheet that we will be passing on to the investor.”

Last week’s bids were submitted ahead of a June 19 deadline to acquire up to 100 percent of PIA, which, following a major restructuring effort, posted its first operating profit in 21 years in the year through June 2024.

When asked why the government wanted to keep a minority shareholding rather than sell the whole company, the privatization chief said it was to benefit financially if the airline improved after the sale.

“Frankly, the government is not interested in controlling this entity anymore,” Ali said. “If the government is very actively involved in the decision-making, then that spirit is not met. So, from a control element, we want the private sector to be totally authorized to take all the decisions.”

But once PIA turned around, “the government would want to make some money off it.”

“So, the government would like to keep 20 to 25 percent, that’s our wish list. But again, that depends on our final negotiations with the investors.”

The privatization chief also dismissed concerns that the PIA sale could face the same pitfalls as the government’s partial privatization of Pakistan Telecommunication Company Limited (PTCL) in 2006, when a 26 percent stake and management control were sold to UAE’s Etisalat. To date, the Abu Dhabi-listed operator has withheld $800 million because the government did not transfer title of some properties to PTCL as per the deal terms.

“In case of PIA, there is no issue as far as land title or anything like that is concerned,” Ali said, adding that unlike PTCL, the government would ensure the majority stake was fully transferred and proceeds are received upfront, while any residual stake would be sold later “when the time is right.”

WHAT PRICE TO EXPECT

A previous attempt to sell PIA failed when a $36 million bid from real estate firm Blue World City fell far short of the $305 million floor price for a 60 percent stake, amid concerns over debt, staffing and limited control. The government rejected the bid.

Ali said this time the reference price could be higher given that the airline was showing modest signs of recovery, resuming profitable European routes and hoping for UK clearance soon, which officials expect will lift revenues and support a stronger valuation.

But he insisted Islamabad would walk away again if the new bids fell short, noting that even private sector attempts to sell large assets often required multiple rounds.

“What we would want is we get our reference price or higher. And if we have to wait a bit, we will wait it out a bit,” he added.

“It’s a great asset, frankly. It’s not losing money, it’s making money … PIA is doing well, the Paris route is doing well, they keep adding the flights, we are hoping that the UK route will start … So, with every new route which opens up, PIA’s performance will keep getting better. So I wouldn’t be worried about that [low bids].”

While all five bids in this round are from local consortiums, with only one group including a non-resident Pakistani group from the United States, the privatization chairman said he was not concerned about the lack of foreign interest for now.

“We have this infatuation with trying to get foreign investors in every industry. I think we have to give it a thought... If a local group takes it, I’m very happy,” Ali said, adding that Pakistani buyers could later bring in foreign airline partners once the turnaround took hold.

Pakistan has pledged to reduce the drag of loss-making state firms on the budget as part of reforms tied to its latest $7 billion IMF bailout and to secure fresh external financing.

The government expects to raise about Rs86 billion — basically its last floor price for PIA — in privatization proceeds in the coming fiscal year starting in July, mainly from the national carrier and a few other transactions such as partial sales of power distribution companies and the Roosevelt Hotel in New York.

But with annual losses from inefficient state-owned enterprises estimated at more than Rs850 billion ($3 billion), the modest target underscores how few assets Islamabad realistically expects to offload in the near term.

“In order to get rid of this Rs850 billion loss to the exchequer, we need to have a very, very aggressive privatization and deregulation agenda,” Ali said, “whereby the market forces in the private sector focus on business and the government comes out of this. So it’s a long journey.”


Barrick CEO Mark Bristow steps down raising questions over future of Pakistan’s Reko Diq project

Barrick CEO Mark Bristow steps down raising questions over future of Pakistan’s Reko Diq project
Updated 57 min 5 sec ago

Barrick CEO Mark Bristow steps down raising questions over future of Pakistan’s Reko Diq project

Barrick CEO Mark Bristow steps down raising questions over future of Pakistan’s Reko Diq project
  • Bristow indicated in May he would stay in his current role until 2028, a timeline that would have allowed him to oversee Reko Diq’s development
  • His biggest test came this year when Barrick’s mine in Mali, Africa was taken over by the military government over alleged non-payment of taxes

Barrick Mining appointed veteran executive Mark Hill as interim president and CEO on Monday following the sudden resignation of Mark Bristow, who led the Canadian miner for nearly seven years after its merger with Randgold Resources.

Bristow, who became CEO in 2019 when Barrick acquired Randgold, oversaw the integration of the two companies and steered the miner through a period of significant portfolio reshaping and debt reduction.

“Disappointed to see him leave, he has been a fine leader,” said Peter Letko, of the Letko Brosseau investment fund, one of Barrick’s shareholders.

Bristow indicated in May he would stay in his current role until 2028, a timeline that would have allowed him to oversee the development of the company’s Reko Diq copper and gold project in Pakistan.

The announcement was therefore “surprising,” analysts at Citi said in a note.

“One question is whether this will lead to bigger changes at Barrick,” they said. “A new CEO could bring a new strategy in Mali, at Reko Diq or for the portfolio.”

Hill, who will also continue to serve as group chief operating officer, takes charge immediately as the board begins a global search for a permanent chief executive with the help of an external firm, named by one source as Egon Zehnder.

The board has been looking at succession planning for some time, driven, according to one source with knowledge of the matter, by the business’s relative underperformance compared to competitors over the past five years.

Shares in Barrick, which owns 13 mining assets across Africa, Asia, Latin America, and North America, have lagged some rivals, rising by 37 percent since 2020 compared to a 110 percent climb in shares of fellow Canadian miner Agnico Eagle, with gold prices hitting record highs.

US-listed shares of Barrick were marginally higher in premarket trading on Monday.

MALI, REKO DIQ AMONG CHALLENGES FOR NEW CEO

The company will consider both internal and external candidates, the source said, adding it was not clear if Hill would put himself forward as permanent CEO.

Bristow’s last public appearance was earlier this month at the Denver Gold Conference, where he addressed a packed room of investors about Barrick’s future plans.

Known for his mercurial leadership style, his tenure at Barrick was focused on integrating tough assets that Barrick owned in some of the volatile regions of the world.

But his biggest test came this year when Barrick’s mine in Mali, one of its biggest gold assets in Africa, was taken over by the military government over alleged non-payment of taxes. Barrick had to write off $1 billion from its books over the dispute.

Resolving that dispute will be among the key challenges for Bristow’s successor, along with the development of Nevada gold project Fourmile and its integration with Nevada Gold Mines joint venture with Newmont, and work on Reko Diq, said Martin Pradier of Veritas Investment Research.


Pakistan PM backs Trump’s Gaza plan, says his leadership vital to ending war

Pakistan PM backs Trump’s Gaza plan, says his leadership vital to ending war
Updated 29 September 2025

Pakistan PM backs Trump’s Gaza plan, says his leadership vital to ending war

Pakistan PM backs Trump’s Gaza plan, says his leadership vital to ending war
  • Trump presented the peace plan for Gaza during his meeting with leaders of Pakistan, Ƶ and other Muslim states last week
  • PM Shehbaz Sharif says he strongly believes the implementation of a two-state proposal is essential to ensure lasting peace in region

ISLAMABAD: Pakistan Prime Minister Shehbaz Sharif on Monday backed President Donald Trump’s 20-point plan to end Israel’s war on Gaza, praising his leadership for efforts to bring an end to the nearly two-year-old Israeli onslaught.

Trump presented the peace plan for Gaza and the Middle East during his meeting with leaders of Pakistan, Ƶ, United Arab Emirates, Turkiye, Indonesia and other Muslim states last week on the sidelines of the United Nations General Assembly (UNGA) session.

The meeting came in the backdrop of Israel’s ramping up of its military operations in Gaza, where it has killed over 65,000 people since October 2023, as well as Israeli attacks against other regional states, with Muslim nations demanding the world hold Tel Aviv accountable.

In a post on X, Sharif, whose country does not recognize Israel and calls for an independent Palestinian state with pre-1967 borders, welcomed the US president’s 20-point plan to ensure an end to the war in Gaza.

“I am also convinced that durable peace between the Palestinian people and Israel would be essential in bringing political stability and economic growth to the region,” the Pakistan premier said.

“It is also my firm belief that President Trump is fully prepared to assist in whatever way necessary to make this extremely important and urgent understanding to become a reality.”

Sharif has gained favor with Trump since publicly endorsing the US president for a Nobel Peace Prize over his role in brokering a ceasefire in a four-day Pakistan-India military standoff in May. Unlike Sharif, PM Narendra Modi has declined to indulge Trump’s attempt to claim credit for the truce.

On Sept. 25, the Pakistani premier and Army Chief Field Marshal Asim Munir met Trump at the White House, in a high-level engagement aimed at resetting relations between the two countries and expanding cooperation on security, trade and regional peace.

On Sunday, Trump expressed optimism about reaching a deal to end the war in Gaza, saying there is “a real chance for greatness in the Middle East.”

“I laud President Trump’s leadership and the vital role played by Special Envoy Steve Witkoff in bringing an end to this war,” Sharif said in his X post on Monday.

“I also strongly believe that the implementation of the two-state proposal is essential to ensure lasting peace in the region.”


Pakistan cuts growth forecast to 3.9 percent as government’s flood damage estimates top $1.3 billion

Pakistan cuts growth forecast to 3.9 percent as government’s flood damage estimates top $1.3 billion
Updated 29 September 2025

Pakistan cuts growth forecast to 3.9 percent as government’s flood damage estimates top $1.3 billion

Pakistan cuts growth forecast to 3.9 percent as government’s flood damage estimates top $1.3 billion
  • Preliminary assessment says agriculture sector suffered $546 million in losses from floods
  • Experts warn unplanned relief spending could worsen fiscal pressures under IMF program

ISLAMABAD: Pakistan has slashed its annual gross domestic product (GDP) growth forecast to 3.9 percent from an earlier target of 4.2 percent as devastating monsoon floods this year caused an estimated $1.3 billion (Rs371 billion) in damage, according to a preliminary government assessment seen by Arab News.

The revised outlook highlights how recurring climate disasters are undermining Pakistan’s fragile economic recovery, even as it implements structural reforms under a $7 billion International Monetary Fund (IMF) program. Monsoon rains and floods have killed over 1,000 people, affected more than 4.5 million since June 26, and submerged millions of acres of farmland and standing crops, according to disaster management authorities.

The damage estimates currently reflect losses only from Punjab province, and assessments in Sindh and other regions are still underway, suggesting the final toll could be significantly higher. The agriculture sector — which underpins food security and exports — is the hardest hit, suffering $546 million (Rs155 billion) in losses, with projected growth slowing from 4.5 percent to 4 percent, according to the government’s early report of damages. 

Crop production has borne the brunt of the loss, with key staples such as wheat, rice and cotton expected to see growth decline from 6.7 percent to 4.5 percent. The industrial sector is projected to sustain more modest losses of $105 million (Rs29.9 billion), with growth revised slightly downward from 4.3 percent to 4.2 percent, while the services sector faces losses of $652 million (Rs186 billion). The transport and storage sector incurred $259 million (Rs74 billion) in damages, and the information and communication sector will contract from 5.0 percent to 4.3 percent, losing $51 million (Rs14.5 billion). Education and health sectors have incurred combined losses of about $19 million (Rs5.6 billion).

Economic experts have urged the government to avoid “unplanned expenditures” for relief after the latest disaster that follows the 2022 cataclysmic deluges, which killed more than 1,700 people, affected 33 million and caused an estimated $30 billion in losses.

“In response to Pakistan’s appeal [for international assistance] after devastating 2022 floods, funds to the tune of $10.98 billion were committed, but apart from the Saudi oil facility and deferred payment relief, only 25 percent of the remaining amount was actually received,” Dr. Abid Qaiyum Suleri from the Islamabad-based Sustainable Development Policy Institute (SDPI) think tank, told Arab News. “The country should locally arrange climate funds annually to deal with floods and other disasters.”

Arab News contacted Climate Change Minister Musadik Malik and Finance Adviser Khurram Schehzad for comment on the government’s assessment and any plans for an international appeal but received no response.

Earlier this year, Pakistan and the World Bank signed a Country Partnership Framework worth $20 billion over the next decade to support the country’s development priorities, including climate adaptation, social protection and private-sector growth. The financing, which complements the ongoing IMF program, is intended to strengthen the country’s economic resilience in the face of recurring climate shocks like the latest monsoon floods.

Despite contributing less than 1 percent of global greenhouse gas emissions, Pakistan ranks among the countries most vulnerable to climate change. Experts warn that without urgent adaptation and mitigation measures, the human and economic toll of climate change in Pakistan will only deepen in the years ahead.

But Muhammad Waqas Ghani, head of research at the JS Global brokerage firm, warned the government against fiscal and external risks if it resorted to unplanned relief spending.

“Despite the scale of devastation in 2022, international assistance for Pakistan remained limited,” Ghani said. “Should the government now resort to unplanned expenditures on relief, restoration, and subsidies, it will create additional fiscal stress at a time when the country is already operating under strict IMF program targets.”

Damages to crops, livestock and textiles, which account for nearly 30 percent of Pakistan’s consumer price index, pose a “key downside risk to inflation forecasts,” while food imports and reduced textile and rice exports could worsen the external account, Ghani added.


Pakistani province to launch first government-run EV taxi service in December

Pakistani province to launch first government-run EV taxi service in December
Updated 29 September 2025

Pakistani province to launch first government-run EV taxi service in December

Pakistani province to launch first government-run EV taxi service in December
  • The country’s new EV policy targets 30 percent of all new vehicle sales to be electric by 2030
  • EVs are key to cutting transport emissions accounting for 10 percent of Pakistan’s carbon output

KARACHI: The Sindh provincial government on Monday announced it will launch Pakistan’s first government-run electric vehicle (EV) taxi service in December to give public access to modern, eco-friendly and high-quality travel services.

Electric vehicles are vital to reducing transport emissions, which make up about 10 percent of Pakistan’s carbon output and for cutting a $16 billion annual oil import bill, according to Pakistani government data.

In June, the South Asian country launched its new EV policy that aims to accelerate the country’s shift toward sustainable transport, reduce fossil fuel dependence and curb climate-warming emissions.

Speaking at a meeting of provincial officials, Sindh Information Minister Sharjeel Memon noted the provincial administration had already introduced eco-friendly EV buses for the first time in Pakistan.

“In the initial phase, some EV taxis will be reserved exclusively for women,” he was quoted as saying by the provincial information department.

The minister said their Pink Scooty program for women and female students has been widely appreciated by the masses, along with the Pink Bus service for women.

“Now, with the launch of the Pink EV taxi for women, the Sindh government is introducing the country’s first EV taxi service,” he added.

Pakistan, which has experienced erratic weather patterns that experts attribute to climate change, has joined a growing list of nations pushing for zero-emission mobility to curb climate change and urban pollution.

The country’s new EV policy targets 30 percent of all new vehicle sales to be electric by 2030 to cut its reliance on imported fossil fuels. EVs are also expected to offer long-term savings to customers through reduced fuel and maintenance costs.

The South Asian country of over 240 million plans to incentivize EV adoption through tax breaks, subsidies and infrastructure development, including nationwide charging stations.

Memon said the Sindh provincial government will soon run double-decker and additional EV buses to ease transport challenges in Karachi, the provincial capital and the country’s financial hub.

“Work is also underway to develop the necessary infrastructure and charging stations for EV vehicles to ensure the project is sustainable and successful,” he added.


Pakistan revenue watchdog says no extension in Sept. 30 deadline to file income tax returns

Pakistan revenue watchdog says no extension in Sept. 30 deadline to file income tax returns
Updated 29 September 2025

Pakistan revenue watchdog says no extension in Sept. 30 deadline to file income tax returns

Pakistan revenue watchdog says no extension in Sept. 30 deadline to file income tax returns
  • The statement comes after some reports suggest the Federal Board of Revenue has extended the deadline in view of recent floods
  • Taxpayers are cautioned that failure to file returns by the due date will result in late-filer status and penalties, the watchdog says

ISLAMABAD: Pakistan’s Federal Board of Revenue (FBR) on Monday rejected reports of an extension in deadline to file income tax returns for fiscal year 2024-25, saying Sept. 30 is final date for all Pakistanis to submit their wealth statements.

The statement came after some reports suggested the revenue watchdog had extended the deadline in view of the recent floods that killed more than 1,000 Pakistanis, uprooted nearly 3 million people and submerged standing crops on vast tracts of lands.

In a statement issued on Monday, the FBR said that all these reports were false, baseless and misleading and the deadline for filing income tax returns for Tax Year 2025 will not be extended.

“It is pointed out that a vast majority of taxpayers reside in areas unaffected by floods and have had ample time to discharge their national obligation of filing returns,” it said.

“Taxpayers are also cautioned that failure to file returns by the due date will result in late-filer status and imposition of penalties under the law.”

The South Asian country has one of the lowest tax-to-GDP ratios in the region, despite a population of more than 240 million, and has often failed to meet its collection targets.

In June, Prime Minister Shehbaz Sharif’s government set a record-high tax collection target of Rs14.13 trillion ($47.4 billion) for the fiscal year 2025–26, marking a 9 percent increase from the previous year.

Officials say meeting this goal is essential to reducing reliance on external debt and ensuring long-term fiscal sustainability.

“FBR urges all eligible taxpayers to act responsibly and file their Income Tax Returns with accuracy and honesty before the deadline of 30th September, 2025 to avoid any legal consequences,” the FBR said, denying reports about a slowdown of its tax returns filing platform, IRIS.

“In case of extreme hardship, the taxpayers can avail extension of return up to fifteen days with payment of due taxes by 30th September subject to approval by the relevant committee as per law.”