The Pakistani government has re-hired Ernst & Young (E&Y) to lead the privatisation of Pakistan International Airlines (PIA), just two months after publicly criticizing the consultancy’s handling of the first attempt. Despite earlier complaints from Privatisation Minister Abdul Aleem Khan, who had slammed E&Y’s subpar performance, the government has decided to give the firm another shot at selling the ailing airline.
At a briefing to the National Assembly Standing Committee on Privatisation, Privatisation Secretary Usman Bajwa confirmed that a fresh advertisement for interested bidders will soon be issued. This marks a shift from November’s harsh criticism when the government had expressed dissatisfaction with E&Y’s handling of the initial privatisation bid, which had failed due to a lack of serious foreign interest and the unacceptably low offers.
Bajwa, however, pointed to some positive developments, including PIA’s new European routes and an IMF-approved waiver on aircraft leasing taxes, boosting the airline’s value ahead of the upcoming round of bidding. The government is now banking on these factors to attract stronger bidders.
Despite the government’s optimism, some committee members expressed concerns over the slow privatisation process, especially with only one bidder showing interest in the House Building Finance Corporation (HBFC). The committee rejected proposed changes to the Privatisation Commission Ordinance, arguing against granting the Prime Minister unchecked powers over board appointments and remunerations.
In the case of the Roosevelt Hotel, options for sale, joint venture, or a long-term lease are under consideration, with the committee leaning towards an outright sale to avoid potential complications.
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