PIA Privatisation Expected by November; Discos and Power Plants Next in Line
ISLAMABAD: Pakistan International Airlines (PIA) is on track for privatisation by November 2025, the Senate Standing Committee on Privatisation was informed on Monday. Four companies are currently in the race, with two already disqualified for not meeting required standards. Interested bidders are required to form consortiums with established airlines to operate PIA effectively.
During the briefing, Senator Zeeshan Khanzada raised concerns about PIA’s massive Rs650 billion debt, prompting Committee Chairman Senator Dr. Afnan Ullah Khan to suggest selling the airline’s two hotels to help offset liabilities. Officials highlighted that investors are naturally drawn to profitable companies, even if these entities may not remain lucrative in the long term.
The committee also reviewed progress on other privatisation initiatives, including power distribution companies (Discos), generation companies (Gencos), and Pakistan Minerals Development Corporation (PMDC).
Power Sector Privatisation Updates:
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Nandipur Power Plant: Eight of nine major issues resolved; only a gas purchase and sale agreement is pending. Government is evaluating whether to provide a dedicated gas supply or continue with the current arrangement.
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Guddu Power Plant: Four of nine issues resolved; land transfer disputes remain, though WAPDA has issued a No Objection Certificate (NOC).
Senator Afnan Ullah emphasized that resolving energy supply issues is crucial for successful privatisation. The committee also stressed the need for clarity on debt restructuring, energy agreements, and protection of profitable state assets before moving forward.
