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ISLAMABAD: An overseas Pakistani group has offered more than 1.25 trillion rupees for the national airline as the South Asian country looks to sell loss-making state-owned enterprises to improve the economy.
“I am writing to formally present an offer to acquire Pakistan International Airlines (PIA) at a valuation of PKR 100 billion,” Al-Nihang’s Group CEO Muhammad Ali Faqir said in a letter to the three ministries of Pakistan.
Cash-strapped Pakistan is seeking to offload a 51-100% stake in debt-ridden PIA to raise funds under a $7 billion International Monetary Fund program and to reform bleeding public institutions.
In May this year, Finance Minister Muhammad Aurangzeb clarified that there is no such thing as a “strategic SOE” and vowed to accelerate the privatization agenda.
The overseas group’s offer comes after the government failed to place a substantial bid for the national airline at a bidding ceremony on October 31. The Privatization Commission attracted bids of only Rs 10 billion against the Rs 85 billion price tag for the national airline.
The email was sent to the ministers of privatisation, aviation and defence. Also forwarded to Establishment Division.
According to Faqir, his proposal to revive PIA includes enhancing its operational capabilities, increasing revenue streams, and positioning the airline as a leader in the regional aviation market.
The business group will focus on engineering and technical services, specialized cargo operations, aviation training and professional development.
He said, “By fully utilizing these strengths, we aim to significantly increase foreign exchange inflows, contribute to Pakistan’s economic growth, and foster an environment that attracts international business and partnerships.” to give.”
Al-Nihang Group has set seven conditions including Rs 100 billion for acquiring PIA.
It said that “Al-Nihang Group will assume all current liabilities of PIA, estimated at Rs 250 billion, and will ensure full payment of outstanding liabilities as part of the proposal. ”
The proposal added that while all PIA employees would be retained for two to three years, the company would be committed to “continuous payment of their salaries and proportionate benefits”.
According to the firm, it will acquire the entire shareholding of PIA as per the terms stipulated in the tender proposal, accepting comprehensive ownership.
Additionally, PIA’s aircraft fleet will be “strategically expanded” to increase service capacity and market reach.
“The passenger, cargo and engineering services divisions will be completely revamped and modernized, ensuring PIA’s operational efficiency and competitive advantage in the aviation market,” the email said.
Finally, it said the company is “ready to meet all due diligence requirements immediately.”
The firm added that it is committed to cooperating with the relevant authorities to meet the conditions and support the airline.
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