Pakistan aims to retain stake in state airline after sale

Pakistan plans to retain a stake in state-owned Pakistan International Airlines to benefit from an increase in value after the sale.

The nation plans to schedule the date for the final bidding in 10 days, Usman Bajwa, secretary at the Privatisation Commission said at a news briefing in Islamabad. The nation’s asset sale agency plans to offer at least 51% stake in Pakistan International Airlines to the six shortlisted groups.

The airline has failed to make a profit in almost two decades. The sale is a step toward the government’s goal to undertake economic reforms agreed with the International Monetary Fund for a bailout. Previous attempts to sell the airline have failed. 

The nation plans to sell ten companies including power distributors within a year, according to the privatization ministry. The government is also seeking initial bids for New York’s Roosevelt Hotel, which it owns and may be an outright sale, joint venture or a long-term lease.

Pakistan last month selected six groups to bid for the airline, which include tycoon Arif Habib and a consortium led by the Yunus Brothers Group. Pak Ethanol Pvt.’s consortium includes Switzerland’s Swiss Aviation Group AG, Austria’s Airport Competence GmbH and Australia’s Pearl Asset Management.