Privatization of PIA, instead of 85 billion, a bidder bid only 10 billion

The privatization of Pakistan International Airlines (PIA) faced unexpected developments during the recent bidding ceremony, where the only bidder offered a significantly lower amount than anticipated. The government's minimum bid requirement was set at 85 billion rupees, but the sole bid received was only 10 billion.

Bidding Ceremony Overview

The bidding ceremony took place in Islamabad and was attended by key figures, including Secretary of the Ministry of Privatization Javed Pal, Secretary of the Privatization Commission Usman Bajwa, and representatives from the bidding consortium, Blue World City. The atmosphere was tense as the bid was unveiled, leading to surprising reactions from the attendees.

The Bid from Blue World City Consortium

The Blue World City Consortium submitted the only bid for the privatization of PIA, with representative Wali Muhammad present at the ceremony. Despite the government’s stipulated minimum price of 85.3 billion rupees for 60% of PIA’s shares, the consortium's bid of just 10 billion rupees drew disbelief from the audience.

Reactions to the Bid

The offer was met with laughter and disbelief, both from the management of PIA and the Privatization Commission. Given that PIA’s assets are valued at around 152 billion rupees, the stark difference between the bid and the required minimum price left many astonished. After the initial bid, the consortium was given 30 minutes to reconsider their offer but chose to stick with the original bid of 10 billion.

Statements from the Bidding Consortium

Saad Nazir, chairman of Blue World City, remarked that the government's minimum price was excessively high, highlighting the discrepancy between the bid and the required amount. He pointed out that PIA has liabilities amounting to 200 billion rupees, suggesting that establishing a new airline might be more feasible than privatizing PIA for 85 billion.

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Conclusion

The privatization process of PIA has reached an unexpected turning point with the Blue World City Consortium’s bid of just 10 billion rupees, far below the government's expectations. As the Privatization Commission prepares to review this situation, the future of PIA remains uncertain. The stark contrast between the required and offered amounts raises questions about the viability of privatization and the management of the national carrier moving forward.