Pakistan draws five potential buyers for national air carrier
ISLAMABAD: In its efforts to sell its struggling national airline, Pakistan has received expressions of interest from five parties, including business groups and a military-backed firm, the Privatization Ministry said on Thursday.
The bids were submitted ahead of a June 19 deadline to acquire up to 100 percent of Pakistan International Airlines, which has accumulated over $2.5 billion in losses in roughly a decade.
Still, following a major restructuring, it posted its first operating profit in 21 years in the year through June 2024.
The sale is seen as a test of Pakistan's ability to shed loss-making state firms and meet conditions of a $7 billion International Monetary Fund bailout. It would be the country's first major privatization in nearly two decades.
Eight parties submitted their expressions of interest, but only five of them provided documents of qualification, the ministry said in a statement.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Arab News
2 hours ago
- Arab News
Pakistan, China, Bangladesh agree to enhance cooperation in trade, investment and maritime affairs
ISLAMABAD: Senior officials of Pakistan, Bangladesh and China on Friday vowed to enhance trilateral cooperation in various sectors such as trade, investment, health, education, maritime affairs and others, the Chinese foreign ministry said. Pakistan and Bangladesh are both part of China's ambitious Belt and Road Initiative (BRI) which aims to connect Asia, Africa and Europe. China envisions the BRI to be a global network of roads, railways, ports, energy pipelines and trade corridors that strengthens Beijing's trade ties with other regions for the benefit of its economy. Pakistan and China are historic allies while strained ties between Islamabad and Dhaka have started to improve since the ouster of former Bangladesh PM Sheikh Hasina last year. The China-Pakistan-Bangladesh Trilateral Vice Foreign Minister/Foreign Secretary meeting was held in Kunming, Yunnan on Thursday, to discuss cooperation in various sectors between the three countries. The meeting was attended by Chinese Vice Foreign Minister Sun Weidong, Bangladeshi Acting Foreign Secretary Ruhul Alam Siddique and Pakistani Additional Secretary (Asia Pacific) Imran Ahmed Siddiqui. Pakistan's Foreign Secretary Amna Baloch participated in the first phase of the meeting via video link. 'The three sides agreed to explore and implement cooperation projects in such areas as industry, trade, maritime affairs, water resources, climate change, agriculture, human resources, think tanks, health, education, culture, and youth,' the Chinese foreign ministry said. The statement said Pakistan, Bangladesh and China will establish a working group to follow up and implement the understandings reached during the meeting on Thursday. The three sides emphasized that China-Bangladesh-Pakistan cooperation adheres to true multilateralism and open regionalism, not directed at any third party, it added. Pakistan's foreign office said Baloch conveyed Islamabad's readiness to work with China and Bangladesh to enhance ties in trade and investment, agriculture, digital economy, environment protection, marine sciences, green infrastructure, culture, education and people-to-people exchanges. 'The three sides agreed that trilateral cooperation would be guided by the principles of openness, inclusivity, good neighborliness, mutual respect and trust, while working toward win-win cooperation,' Pakistan's foreign office said. Pakistan has recently eyed closer cooperation in trade and investment with regional allies as it grapples with a macroeconomic crisis that has drained its financial resources, significantly weakened its currency and triggered a balance of payments crisis for the South Asian country. Prime Minister Shehbaz Sharif has repeatedly spoken about his government's intention to enter 'mutually beneficial' partnerships with allies as opposed to seeking loans from them. In recent months Pakistan has signed memoranda of understanding with allies such as Saudi Arabia, China, United Arab Emirates, Azerbaijan, Turkiye and others worth billions of dollars.
Arab News
14 hours ago
- Arab News
Russia's economy minister says the country is on ‘the brink of recession'
ST. PETERSBURG, Russia: Russia's economy is 'on the brink of going into a recession,' the country's economy minister said Thursday, according to Russian media reports. Economy Minister Maxim Reshetnikov delivered the warning at the St. Petersburg International Economic Forum, the annual event in Russia's second largest city designed to highlight the country's economic prowess and court foreign investors. Russian business news outlet RBC quoted the official as saying 'the numbers indicate cooling, but all our numbers are (like) a rearview mirror. Judging by the way businesses currently feel and the indicators, we are already, it seems to me, on the brink of going into a recession.' The economy, hit with a slew of sanctions after the Kremlin sent troops into Ukraine in February 2022, has so far outperformed predictions. High defense spending has propelled growth and kept unemployment low despite fueling inflation. At the same time, wages have gone up to keep pace with inflation, leaving many workers better off. Large recruiting bonuses for military enlistees and death benefits for those killed in Ukraine also have put more income into the country's poorer regions. But over the long term, inflation and a lack of foreign investments remain threats to the economy, leaving a question mark over how long the militarized economy can keep going. Economists have warned of mounting pressure on the economy and the likelihood it would stagnate due to lack of investment in sectors other than the military. Speaking at a forum session, Reshetnikov said Russia was 'on the brink,' and whether the country would slide into a recession or not depends on the government's actions. 'Going forward, it all depends on our decisions,' Reshetnikov said, according to RBC. RBC reported Russia's Finance Minister Anton Siluanov and Central Bank Gov. Elvira Nabiullina gave more optimistic assessments. Siluanov spoke about the economy 'cooling' but noted that after any cooling 'the summer always comes,' RBC reported. Nabiullina said Russia's economy was merely 'coming out of overheating,' according to RBC. Export losses On the issue of exports, Russia estimates potential losses due to global trade wars at $9 billion, but expects a gradual stabilization of flows and a possible expansion of supplies to China, Deputy Economy Minister Vladimir Ilyichev said. President Trump has upended longstanding trade relations since returning to the White House, using erratic tariff threats and aggressive negotiating tactics in a bid to secure better deals from trading partners. 'Overall, we estimate the impact on Russia of this reorientation at $33 billion, of which about $9 billion is the potential loss of Russian exports in third-country markets,' said Ilyichev.
Arab News
20 hours ago
- Arab News
Pakistan unveils new EV policy with over $353 million in subsidies for electric bikes, rickshaws
ISLAMABAD: The government on Thursday unveiled Pakistan's new Electric Vehicle (EV) Policy 2025-30, announcing a five-year subsidy of over Rs100 billion ($353 million) for electric bikes and rickshaws. The move comes amid a steady rise in electric vehicle adoption in a market traditionally dominated by Japanese automakers. Pakistan's urban areas exhibit some of the world's highest levels of air pollution, with road transport being a major contributor. Chinese and Korean EV brands are increasingly entering the local market, making these vehicles a more frequent sight in cities such as Islamabad, Lahore and Karachi. 'Total subsidy over five years will be over Rs100 billion and it will basically be focused on the two-and-three wheelers,' Haroon Akhtar Khan, a close aide to Prime Minister Shehbaz Sharif, told a news conference. 'We will have subsidized financing for 116,053 electric bikes, 3,171 rickshaws.' 'A Rs9 billion [$31 million] subsidy will be allocated, and it is already there in the 2025-26 budget,' he continued. Khan added the government also allocated a 25 percent quota for women to increase their mobility. He projected the initiative will help with the annual savings of Rs283 billion ($1 billion) in fuel costs and a reduction of 4.5 million tons of carbon emissions. Khan said Pakistan's new EV policy was aimed at disincentivizing internal combustion engine vehicles and promoting electric mobility to help cut greenhouse gas emissions that damage the earth's ozone layer. He informed Pakistan has around 70,000 electric motorcycles, 5,200 electric cars and 450 electric buses, adding the government issued 61 manufacturing licenses for electric two- and three-wheelers including motorcycles and rickshaws. Khan also acknowledged the country lacks adequate EV charging infrastructure and faces challenges related to the absence of safety and quality standards. He said the government aims for 30 percent of all new vehicles produced over the next five years to be electric. 'So, we are establishing new electric vehicle testing rules, safety and emission standards,' he said. 'We have to make sure that if anybody is manufacturing an electric vehicle there are no emissions,' he continued. 'Another thing is battery disposal. We don't want to create any environmental problem that the battery is not disposed properly.' The country previously approved an ambitious National Electric Vehicles Policy (NEVP) in 2019, aiming for electric vehicles to make up 30 percent of all passenger car and heavy-duty truck sales by 2030. The policy set an even more ambitious target of making 90 percent of all vehicle sales electric by 2040.
