Pakistan to tackle potential bidders' concern over airline safety ban
ISLAMABAD, July 3 (Reuters) -Pakistan's privatisation commission is addressing concerns voiced by those qualified to bid for the country's national airline about a European Union Aviation Safety Agency (EASA) ban on the carrier, an official said on Wednesday.
The privatisation of the loss-making state-owned enterprises has long been on the International Monetary Fund's list of recommendations for Pakistan, which is seeking to strike a deal with the fund for a longer term bailout this month.
The privatisation commission pre-qualified six consortiums for bidding in June and expects to conclude the privatisation process of Pakistan International Airlines PIAHa.PSX by next month.
Usman Bajwa, secretary of the commission, told a briefing the body was addressing concerns voiced by those pre-qualified by the government to bid for a stake ranging from 51% to 100%.
Previous governments avoided disposing of the flag carrier as a potentially highly unpopular move, but the country needs to unlock further funding from the IMF.
EASA banned the PIA from its most lucrative routes in Europe and Britain after a PIA plane crash in Karachi in 2020 killed nearly 100, followed by a scandal over pilot licences.
The ban continues, costing the airline annual revenue of nearly 40 billion rupees ($143.73 million), the government has told parliament.
($1 = 278.3000 Pakistani rupees)
Reporting by Asif Shahzad in Islamabad, Writing by Ariba Shahid in Karachi; editing by Barbara Lewis
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
