After the Pakistan International Airlines (PIA) was bid 75 billion rupees lower than the government’s expectation, the matter has now been referred to the Cabinet Committee on Privatization for a decision.
Bidding for the privatization of PIA was opened at a private hotel in Islamabad on Thursday, which was worth Rs 10 billion. The bid was placed by the consortium of Blue World City.
After the deadline for submission of bid documents passed two days ago, only one company, real estate consortium Blue World City, was able to proceed with the process and no other group submitted documents.
On the other hand, the government had set a minimum price of 85 billion three crore rupees for the privatization of PIA. The bidder was also given 30 minutes to deliberate on buying the institution at the government price.
After the break, the chairman of Bello World City Consortium, Saad Nazir, said, “For us, this is what makes a bid.” If this price is not appropriate, then the government should run it itself.’
In case the PIA’s privatization bid falls short of the bid recommended by the government, the matter has gone back to the Cabinet Committee, which will decide on reducing the official price after consideration.
In such a case, the Privatization Committee also has the power to cancel the entire process.
PIA privatization: Government to include only one private housing society in bidding
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The bidding process for the privatization of Pakistan International Airlines (PIA) began on Thursday after a delay for which only one company received bids, according to officials.
The government delayed the bidding process for the privatization of PIA by 30 days.
In this regard, a senior official of the Ministry of Privatization confirmed to Independent Urdu that a bid has been received from private housing society Blue World City for the privatization of PIA.
What is the process after receiving a bid from only one company? In response to this question, the spokesperson of the Ministry of Privatization Ahsan Ishaq told Independent Urdu that ‘the bid will be submitted and opened and the procedure will be implemented.’
Ahsan Ishaq said that the bidder had deposited the ‘earnest money’ for the transaction with the Privatization Commission yesterday i.e. by the deadline.
Earnest money is deposited by the bidders to demonstrate ‘seriousness’ in completing the procurement process.
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#PIA #privatization #stopped #extremely #bidding
**Interview with Saad Nazir, Chairman of Blue World City Consortium, on the PIA Privatization Bid**
*Host:* Thank you for joining us, Saad. Let’s dive right into the recent developments regarding Pakistan International Airlines. The government had set a minimum bid of 85 billion rupees, yet your consortium bid 75 billion rupees lower. What are your thoughts on this disparity?
*Saad Nazir:* Thank you for having me. Yes, it’s true that our bid fell short of the government’s expectations. From our perspective, we believe that the proposed price does not reflect the current market conditions and the operational realities of PIA. If the government feels that our price is unsuitable, they should consider managing the airline themselves.
*Host:* That’s a significant statement. Can you elaborate on what led your consortium to arrive at this figure?
*Saad Nazir:* Certainly. We conducted extensive research and analysis to evaluate PIA’s financials, market potential, and operational challenges. Our bid was based on what we deemed a fair value for the airline, taking into account its current status and the risks involved in revitalizing it.
*Host:* It’s worth noting that you were the only consortium to submit a bid, which raises questions about the interest level in privatizing PIA. Why do you think other potential bidders chose not to participate?
*Saad Nazir:* There could be various reasons. The airline’s financial health, along with the requirements set by the government, might have deterred potential bidders. It’s a significant commitment, and not every investor is willing to engage under the current circumstances without assurance of a viable return.
*Host:* Given that this matter is now with the Cabinet Committee on Privatization, what do you envision as the next steps for your consortium?
*Saad Nazir:* We’re prepared for all outcomes. We remain committed to our assessment and are ready to discuss and negotiate further with the government. It’s crucial for us to find common ground if we are to move forward successfully with the privatization process.
*Host:* Thank you for sharing your insights, Saad. We’ll keep a close eye on how this situation develops moving forward.
*Saad Nazir:* Thank you for having me. I hope for a constructive dialogue that benefits not only our consortium but also the future of PIA and its employees.
