Pakistan International Airlines is completely bankrupt (Social media)
World News: The Pakistani government has once again accelerated the privatization process of Pakistan International Airlines (PIA). The state-owned carrier, which has been incurring heavy losses for years, is now back on the market, and this time the government appears determined to see the deal through successfully.
A significant development occurred on Tuesday when the Privatization Commission declared four companies eligible to bid for the airline. Interestingly, three of these companies are not from the aviation sector but come from the cement industry, reflecting a broader business interest in the deal and the potential for diversification.
In 2023, the government attempted to privatize PIA, but the company’s financial condition was dire. The airline had a negative balance sheet of Rs 45 billion, while the reserve price was set at Rs 85 billion. However, the highest offer received was just Rs 10 billion, making the deal unviable and ultimately causing the plan to collapse.
The crisis worsened in November 2023 when over 7,000 employees did not receive their salaries, further deteriorating the airline’s internal condition. Compounding the problem was a ban imposed by the European Union in 2020 due to safety concerns, which significantly impacted PIA’s international operations.
This time, the government has declared the shortlisted companies technically qualified after evaluating their credentials, with the aim of pushing the bidding process forward smoothly. This move is being viewed not just as a financial bailout but as a long-term revival strategy for the ailing airline.
In a separate diplomatic development in Islamabad, Pakistan and Turkey have agreed to further deepen their bilateral ties across various sectors, including defense, trade, energy, and infrastructure.
On Wednesday, Pakistan's Foreign Minister Ishaq Dar met with Turkish Foreign Minister Hakan Fidan and Defense Minister Yasar Guler. The leaders discussed expanding cooperation and boosting trade volume between the two countries.
Minister Dar emphasized Pakistan’s interest in leveraging Turkey’s extensive experience in the defense sector to enhance its own capabilities. He also stated that both nations are committed to regional peace and stability, particularly through counter-terrorism cooperation and capacity-building efforts.
Turkish Foreign Minister Hakan Fidan described the defense relationship as a “strategic partnership,” asserting that it would continue to grow stronger in the coming years. He affirmed that both countries would remain steadfast allies in combating terrorism and enhancing regional security.
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