Saudi Arabia is currently in discussions with Pakistan regarding the potential privatization of Pakistan International Airlines (PIA), as part of broader talks to invest in various Pakistani state-owned enterprises. This development comes as a high-level Saudi delegation, led by Foreign Minister Faisal bin Farhan Al Saud, visited Pakistan to finalize a bilateral implementation mechanism aimed at enhancing investment-related collaborations between the two nations.
While official statements from the Pakistani government have not directly mentioned PIA, multiple reports from Pakistani news outlets indicate that the Special Investment Facilitation Council, under Pakistan’s Ministry of Foreign Affairs, has specifically invited Saudi Arabia to consider a partnership in privatizing the airline. The proposed partnership could involve Saudi Arabia acquiring a stake in PIA, although the specifics of the arrangement have not been disclosed.
The move to privatize PIA, which has historically been loss-making, is part of Pakistan’s broader initiative to divest from underperforming state-owned assets. The Pakistani Privatisation Commission recently issued a call for expressions of interest (EOI) for the acquisition of 51-100% of PIA’s share capital and management control. This call extends to several Gulf countries, including Saudi Arabia, which have shown interest in potential stakes in the airline.
Interested parties have a deadline of May 3 to submit their EOIs. Following this, further details regarding the number and identities of the bidders are expected to be released. The Pakistani government aims to conclude the privatization process by mid-year, hoping to transition PIA into more efficient and profitable operations under new ownership.
