Islamabad: The government of Pakistan has extended the deadline for submitting Expressions of Interest (EoIs) to acquire Pakistan International Airlines Corporation Limited (PIACL) until June 19, 2025, giving interested investors additional time to participate in one of the country’s largest privatisation deals in recent years.
The revised cut-off date, previously set for June 3, was extended by 15 days. A senior official from the Privatisation Commission confirmed the update, stating that the change was made due to the Eid holidays. All other terms and conditions of the deal remain unchanged.
Under the current privatisation framework, the government is offering between 51% and 100% equity in PIACL, along with full management control of the airline. The process is part of a broader effort to reform loss-making state-owned enterprises, reduce the fiscal deficit, and encourage foreign investment. These initiatives are in line with commitments made under the International Monetary Fund’s (IMF) Extended Fund Facility (EFF).
To make the deal more attractive for buyers, Islamabad has introduced a series of measures including:
General Sales Tax (GST) exemption on the purchase of new aircraft.
Transfer of liabilities off PIA’s balance sheet, effectively making it a “net-zero” equity company.
A possible revision in the price benchmark to better reflect market realities.
These changes address major concerns that stalled an earlier privatisation attempt, which had offered 60% of the airline’s shares with an optional 15% top-up. Back then, PIA’s negative equity—estimated at Rs45 billion—and an 18% GST on aircraft acquisitions had deterred potential buyers.
This time, with IMF support, the government has absorbed the airline’s legacy debt, paving the way for a cleaner, more transparent transaction. The new structure is expected to reduce risk for investors and improve the chances of a successful sale.
EY Consulting LLC is acting as the financial advisor to the Privatisation Commission for the transaction. The government is aiming to complete the process before the end of 2025.
With this extension, the government hopes more local and international investors will come forward with viable bids, helping to revive the struggling national carrier and strengthen Pakistan’s reform credentials on the global stage.
Samra Zulfiqar, a real estate analyst at Zameen.com, is passionate about finding projects that offer buyers the best returns. Her keen insights spotlight the market’s most promising opportunities.
