Latest news with #privatization
Reuters
20 hours ago
- Business
- Reuters
Pakistan draws five potential buyers for national airline PIA, including military-backed group
ISLAMABAD, June 19 (Reuters) - 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 Privatisation Ministry said on Thursday. The bids were submitted ahead of a June 19 deadline to acquire up to 100% of Pakistan International Airlines ( opens new tab, 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 privatisation in nearly two decades. Eight parties submitted their expression of interests, but only five of them provided documents of qualification, the ministry said in a statement. Among the five groups is a consortium of major industrial firms: Lucky Cement Ltd ( opens new tab, Hub Power Holdings Ltd ( opens new tab, Kohat Cement Co Ltd ( opens new tab and Metro Ventures. Another is led by investment firm Arif Habib Corp Ltd ( opens new tab, and includes fertiliser producer Fatima Fertilizer Co Ltd ( opens new tab, private education operator The City School, and real estate firm Lake City Holdings. Fauji Fertilizer Company Ltd , a military-backed conglomerate, Pakistani airline Airblue Ltd and a consortium that includes Bahria Foundation, domestic carrier Serene Air and U.S.-based Equitas Capital LLC also submitted documents. "The government will review the documents and give qualified parties access to data for due diligence," the statement read. Once a leading global airline, PIA resumed European flights in January after a four-year EU ban linked to safety concerns, and is seeking UK clearances, seen as key to its turnaround. Industry insiders say the winning bidder is expected to partner with a foreign airline to run operations. A previous attempt to sell the airline failed as a $36 million bid from real estate firm Blue World City fell short of the $305 million floor price, with concerns over debt, staffing, and limited control. This time, the government is offering full divestment, has scrapped the sales tax on leased aircraft, and is providing limited protection from legal and tax claims. Around 80% of the airline's debt has been transferred to the state. "We're targeting 86 billion rupees in privatisation proceeds this year," Privatisation Minister Muhammad Ali told Reuters. "For PIA, in the last round of bidding, 15% of the proceeds were going to the government, with the rest staying within the company." He said bidders would be pre-qualified in early July, with due diligence lasting 2 to 2.5 months, and final bidding and negotiations expected in the fourth quarter of 2025. Officials hope the sale will revive the stalled privatisation drive. Other planned deals include the Roosevelt Hotel and several power firms, by mid-2026. "From the Roosevelt Hotel, we're expecting over $100 million as first payment during this year," said Ali.
Arab News
21 hours ago
- Business
- Arab News
Five groups submit qualification documents in Pakistan's renewed push to privatize PIA
KARACHI: Pakistan has received qualification documents from five investor groups seeking to acquire a controlling stake in its loss-making national carrier, the Privatization Commission said on Thursday, as the government advances a long-delayed divestment plan. The privatization of state-owned entities has been mandated by the International Monetary Fund (IMF) as Pakistan works to implement structural reforms and stabilize its economy, which has recently shown signs of macroeconomic improvement. Pakistan International Airlines (PIA), in particular, has survived for years on government bailouts, placing further strain on the country's already cash-strapped finances. The government invited expressions of interest in April for a stake ranging from 51 percent to 100 percent in Pakistan International Airlines Corporation Limited (PIACL), along with management control. The final deadline for submitting Statements of Qualification (SOQs) was today. 'The Privatization Commission received Expression of Interest (EOI) from ... eight interested parties,' the official statement said, adding that 'five interested parties submitted SOQs by the deadline today.' Among the groups that submitted documents are a consortium comprising Lucky Cement, Hub Power Holdings, Kohat Cement, and Metro Ventures; a consortium led by Arif Habib Corporation with Fatima Fertilizer, City Schools and Lake City Holdings; Air Blue Limited; Fauji Fertilizer Company Limited, which is a military-backed firm; and a consortium including Serene Air, Augment Securities, Bahria Foundation, Mega C&S Holding and Equitas. The government had previously attempted to privatize PIA in 2024 but called off the process after receiving a single bid of Rs10 billion ($36 million) from Blue World City — far below the Rs85 billion ($305 million) floor price. The sale was scrapped, citing the airline's weak financial position and unattractive terms for buyers. PIA has long been a fiscal liability, with operational earnings repeatedly offset by heavy debt servicing. However, following restructuring, it reported an operating profit of Rs9.3 billion ($33.1 million) in April, its first in 21 years. 'The SOQs submitted by the parties will be evaluated by the Privatization Commission against the prequalification criteria,' the official statement informed. 'The prequalified parties will proceed to the next stage where they will be given access to the virtual data room to undertake buy-side due diligence.'
CTV News
21 hours ago
- Health
- CTV News
‘Under attack': Critics sound alarm on health care ahead of Airdrie town hall
The City of Airdrie is the largest municipality in Alberta without a hospital within its town limits. The Alberta NDP is concerned that a new, privately run facility will take away resources from the community. A town hall meeting on Thursday night in Airdrie will address growing concerns over the state of Alberta's health-care system. Hosted by the Airdrie-East New Democrats, organizers say the event is designed to give the community a platform to ask questions and hear from non-partisan health experts. One of the key issues expected to dominate the discussion is health-care privatization. Friends of Medicare, an advocacy group scheduled to speak at the event, claims Alberta's public health system is 'under severe attack from the Alberta government.' The group is particularly concerned about the province's decision to approve a privately-run urgent care centre in Airdrie. 'Rather than improving outcomes, this centre threatens to siphon front-line workers and limited resources away from our public system,' said the group in a post about the event. Friends of Medicare also says Airdrie, now the largest municipality in Alberta without a hospital, has been overlooked in health infrastructure planning. It notes that calls for a new community hospital have gone unanswered, despite the city's growing population and increasing demand for services. In a statement to CTV News, Health Minister Adriana LaGrange defended the province's actions and accused the NDP of spreading misinformation. 'Our government remains fully committed to a strong, publicly funded health-care system and is focused on delivering real, lasting improvements for all Albertans,' LaGrange said. 'Under attack': Critics sound alarm on health care ahead of Airdrie town hall The minister also cited shortcomings under the previous NDP government, including a compensation model that failed to attract doctors and longer wait times for surgeries. She then highlighted recent efforts by the current government to expand surgical capacity and recruit more physicians across the province. The town hall will take place at 6:30 p.m. at Airdrie's Town and Country Centre.
Arab News
a day ago
- Business
- Arab News
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.
Zawya
a day ago
- Business
- Zawya
Pakistan draws five potential buyers for national airline PIA, including military-backed group
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 Privatisation Ministry said on Thursday. The bids were submitted ahead of a June 19 deadline to acquire up to 100% 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 privatisation in nearly two decades. Eight parties submitted their expression of interests, but only five of them provided documents of qualification, the ministry said in a statement. (Reporting by Ariba Shahid in Islamabad; Editing by Bernadette Baum)
