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Pakistan mulls transaction structure for second attempt to privatize loss-making national airline

Pakistan mulls transaction structure for second attempt to privatize loss-making national airline
Pakistan International Airline (PIA) planes are positioned on the tarmac at the Benazir Bhutto International Airport in Islamabad on October 10, 2012. (AFP/File)
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Updated 18 March 2025
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Pakistan mulls transaction structure for second attempt to privatize loss-making national airline

Pakistan mulls transaction structure for second attempt to privatize loss-making national airline
  • Last year, a deal fell through after a potential buyer reportedly offered $36 million for a 60 percent stake in PIA, a fraction of the asking price
  • Pakistan is looking to privatize the debt-ridden airline to raise funds and reform state-owned enterprises as envisaged under a $7 billion IMF program
Updated 18 March 2025
Ismail Dilawar
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ISLAMABAD: Pakistan is mulling transaction structure for a second attempt to sale 51-100 percent share of its loss-making national carrier, the Pakistan International Airlines (PIA), the Privatization Commission said on Tuesday.
Cash-strapped Pakistan is looking to privatize the debt-ridden PIA to raise funds and reform state-owned enterprises as envisaged under a $7 billion International Monetary Fund (IMF) program secured last year.
Late last year, a deal fell through after a potential buyer reportedly offered $36 million for a 60 percent stake in the national flag carrier, a fraction of the asking price of approximately $303 million.
On Tuesday, Muhammad Ali, Pakistan prime minister adviser on privatization, presided over the commission’s board meeting to discuss transaction structure for the divestment of the Pakistan International Airlines Corporation Limited (PIACL).
“The board recommended to CCOP (Competition Commission of Pakistan) the transaction structure proposed for the 2nd attempt of PIACL privatization based on divestment of 51 percent to 100 percent share capital of PIACL together with the management control of PIACL,” the Privatization Commission said.
“The final terms and conditions for the transfer and acquisition of equity stake shall be finalized during course of bidding process and set out in the bid documents for approval by CCOP.”
In June, the government had pre-qualified six groups, but only real-estate development company Blue World City participated in the bidding process to acquire the airline.
Among concerns raised by potential bidders for the PIA stake include policy continuity, honoring contracts, inconsistent government communication, unattractive terms and taxes on the sector, and the flag carrier’s legacy issues and reputation.
Officials say PIA’s cumulative losses alone are close to $3 billion, with the total asset valuation of the airline standing at approximately $572 million.
Earlier this year, PIA resumed operations in Europe, after a 2020 ban by the European Union Aviation Safety Agency (EASA) over concerns about the ability of Pakistani authorities and its Civil Aviation Authority (PCAA) to ensure compliance with international aviation standards.
EASA and UK authorities both suspended permission for PIA to operate in the region after Pakistan began investigating the validity of pilots’ licenses following a deadly plane crash that killed 97 people. Pakistan hopes new European routes and flying approval to the UK will boost PIA’s selling potential.

Topics: Pakistan International Airlines (PIA)

Back on the pitch: Pakistan Super League resumes after conflict-forced suspension

Back on the pitch: Pakistan Super League resumes after conflict-forced suspension
Updated 7 sec ago
AP
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Back on the pitch: Pakistan Super League resumes after conflict-forced suspension

Back on the pitch: Pakistan Super League resumes after conflict-forced suspension
  • The Pakistan Super League was suspended on May 9 but last weekend Pakistan and India agreed to a ceasefire
  • The Indian Premier League, also suspended due to the outbreak between the countries, will also resume this weekend
Updated 7 sec ago
AP

ISLAMABAD: Pakistan’s premier Twenty20 cricket tournament resumes Saturday after a ceasefire between India and Pakistan was achieved. There will be a handful of foreign players returning for the remaining eight games.

The Pakistan Super League was suspended on May 9 but last weekend Pakistan and India agreed to a ceasefire after talks to defuse their most serious military confrontation in decades.

The Indian Premier League, also suspended due to the outbreak between the countries, will also resume this weekend.

PSL organizers first proposed moving the tournament to Dubai but later decided to postpone it after foreign players were reluctant to participate in the tournament due to security concerns. Around 43 foreign cricketers — competing on six PSL teams — were flown out of Pakistan from an air base in Rawalpindi.

Rawalpindi will host the remaining four league matches between May 17-19 before Lahore hosts the playoffs from May 21, including the final at Qaddafi Stadium on May 25.

Zimbabwean all-rounder Sikander Raza is among some of foreign players who have returned to Pakistan. Raza, who plays for Lahore Qalandars, is available for Lahore’s crucial last league game against Peshawar Zalmi on Sunday before he flies to England for test duty starting next week.

Raza will not be available for Lahore if the two-time champions qualify for the playoffs due to his test commitments.

He said that if the PSL resumed, he planned to return to Pakistan, even for just one match.

“I was very clear in my head that I was always going to go back,” Raza told The Associated Press as he trained with his teammates at Islamabad Club ground on Thursday.

“This PSL is not just about winning a trophy, there’s a lot more to it. All the overseas (players) that have come back, whether they’re in Pakistan or India, I think credit must be given to them because cricket unites and the whole purpose of sports all around the world is to unite cultures, countries.”

Lahore will also have Sri Lanka batter Bhanuka Rajapaksa and Bangladesh all-rounder Shakib Al Hasan for its must-win last league game against the Babar Azam-led Peshawar side after Tom Curran and Daryl Mitchel were ruled out due to injuries.

Raza said it was tough for the families of all the players living abroad after there was escalation at the borders.

“Whether it’s Pakistan or India, what happened was tough for everybody,” Raza said. “Sometimes when you’re on the ground, things may not be as bad, but (for) people back home watching TV, sometimes it’s very hard to control what media tells you.”

Lahore team director Sameen Rana said it was important that the PSL returns to finish the season.

“There’s a lot of uncertainty and the conditions which were happening on the ground was not the best, it’s unfortunate,” Rana said. “But from our perspective . . . the important thing is that the PSL is resuming, and that’s what matters.”

Defending champions Islamabad United has brought in Alex Hales of England and Rassie van Dussen of South Africa after initially picking both of them in the supplementary draft while Ben Dwarshuis of Australia is flying back to rejoin the team.

Islamabad, the three-time PSL champions, won five games in a row at the start of the season before four successive defeats.

Finn Allen of New Zealand and Rilee Rossouw of South Africa are rejoining first-place Quetta Gladiators, who have 13 points, three points ahead of Karachi and Islamabad.

Karachi is expecting to have its captain David Warner back from Australia in time to lead the team against Peshawar on Saturday.

Topics: Pakistan Super League (PSL) PSL X

IMF may disburse first tranche of climate loan to Pakistan in ‘about six months’

IMF may disburse first tranche of climate loan to Pakistan in ‘about six months’
Updated 40 min 45 sec ago
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IMF may disburse first tranche of climate loan to Pakistan in ‘about six months’

IMF may disburse first tranche of climate loan to Pakistan in ‘about six months’
  • Lender to approve first climate loan payment with the second review of Pakistan’s External Fund Facility program, says source
  • Pakistan’s finance adviser says loan, linked to implementation of key performance indicators, to be released over next 28 months
Updated 40 min 45 sec ago
Ismail Dilawar

KARACHI: The International Monetary Fund (IMF) is likely to release the first tranche of its $1.4 billion climate resilience loan for Pakistan “in about six months,” a source with direct knowledge of the development told Arab News on Thursday. 

The IMF last Friday approved a fresh $1.4 billion loan to Pakistan under its climate resilience fund and approved the first review of its $7 billion External Fund Facility program, freeing about $1 billion in cash.

The Washington-based lender is expected to start the Resilience and Sustainability Facility (RSF) funding for Pakistan along with its second review of Islamabad’s EFF program, the source disclosed on condition of anonymity as they are not authorized to speak to media on the matter. 

“With the second review of the EFF, if the [IMF] board approves then they [Pakistan] might get the first tranche of the RSF, ” the source said, adding that the next EFF review is expected to take place “in about six months.”

“For climate financing, nothing will be disbursed now,” they added. 

Pakistan’s finance adviser Khurram Schehzad said the climate loan is not a “one-off payment.”

“The RSF fund will be released gradually over the next 28 months, which is linked to the implementation of 13 KPIs (key performance indicators),” the official told Arab News.

He did not elaborate how much the global lender would release as part of the first tranche.

The RSF will support Pakistan’s efforts in building economic resilience to climate vulnerabilities and natural disasters. The South Asian country has been consistently ranked as one of the worst affected countries due to climate change effects. 

In 2022, Pakistan was devastated by flash floods triggered by unusually heavy rains and the melting of glaciers. The catastrophe killed 1,700 people, displaced more than 30 million others and damaged crops and infrastructure worth $30 billion.

That forced Pakistan last year to request the IMF for the RSF fund to address its vulnerability to climate change.

The IMF on May 9 approved the much-awaited climate loan for Pakistan and disbursed the $1.02 billion as its first tranche under the EFF program on May 13.

The Washington-based lender is scheduled to hold its second EFF review of Pakistan’s economic performance on Sept. 15, Sana Tawfik, the head of research at Arif Habib Ltd., said, citing the IMF’s Pakistan Country Report 2024.

When asked if the next IMF review will be delayed, the source replied in the negative. 

The RSF funds are crucial for Pakistan as its dwindling foreign exchange reserves rose to $10.3 billion last week. This amount does not meet the IMF’s three-month import cover threshold requirement.

In its monetary policy statement on May 5, Pakistan’s central bank said delays in the realization of official inflows coupled with “large debt repayments” weakened net financial inflows into the country till March.

Pakistan, which narrowly averted a sovereign default in 2023 after a last-gasp IMF bailout package, owed about $26 billion debt repayments this year ending June. While most of its foreign debt has been repaid, the country still relies heavily on the IMF’s funds to keep its balance of payment position in check.

The central bank expects the country’s foreign reserves to increase to $14 billion by June “on the back of the expected realization of planned official inflows.”

“This build-up in FX reserves to continue in FY26, based on a moderate current account deficit and improved financial inflows,” the SBP said in its statement.

Topics: IMF in Pakistan climate financing

Pakistan Air Force shot down six Indian fighter jets, says PM Sharif

Pakistan Air Force shot down six Indian fighter jets, says PM Sharif
Updated 15 May 2025
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Pakistan Air Force shot down six Indian fighter jets, says PM Sharif

Pakistan Air Force shot down six Indian fighter jets, says PM Sharif
  • Pakistan PM visits air force base in eastern Kamra town with army chief, senior members of the cabinet
  • Pakistan and India engaged in combat for four days last week beafore agreeing to ceasefire on Saturday
Updated 15 May 2025
Shahjahan Khurram

ISLAMABAD: Prime Minister Shehbaz Sharif paid rich tributes to the Pakistan Air Force (PAF) on Thursday, crediting them for shooting down six Indian fighter jets during the military conflict between the nuclear-armed neighbors last week.

Pakistan’s government and the PAF recently hailed the use of the J-10Cs, saying they were used to shoot down five Indian fighter jets, including three French Rafales, during hostilities between the two sides on the night of May 6. Four days of fighting between India and Pakistan saw them pound each other with missiles, drones and artillery until the United States brokered a ceasefire on Saturday.

The Indian Air Force (IAF) has so far not commented on the reports that Pakistan downed five of its fighter jets, but its chief said admitted this week during a news conference that “losses are a part of combat.”

Sharif paid a visit to the PAF’s operational air base in Kamra, a town located in Pakistan’s eastern Attock district. Accompanied by Army Chief General Syed Asim Munir and senior members of the cabinet, including Foreign Minister Ishaq Dar, Sharif lauded Pakistani pilots for successfully defending the country when India fired missiles into Pakistani territories last Wednesday night.

“Just now we were given an excellent presentation and in that, the actual situation [of the conflict] surfaced,” Sharif told PAF personnel at the air base. “Based on the presentation I can tell the nation today without fear of contradiction that not five but these falcons, you, shot down six enemy jets.”

In a separate statement, the military’s media wing said the sixth Indian aircraft downed by the PAF was a Mirage-2000 fighter jet. It said the jet was shot down near Pampore, east of Srinagar in Indian-administered Kashmir.

Sharif paid trich tribute to the PAF, saying that it had proven to be superior in combat to the IAF based on its homegrown technical expertise.

“The entire nation takes immense pride in the valor and vigilance of its armed forces,” Sharif said. “Under the capable stewardship of the chief of army staff, our defenders have once again underscored that Pakistan’s security is inviolable and any act of belligerence will be met with a forceful, resolute and unforgiving response.”

Sharif warned India that Pakistan’s armed forces were ready to respond to any future acts of aggression.

“Pakistan’s armed forces remain fully prepared and resolutely committed to defending every inch of our territory,” he said. “We stand united, vigilant, and unshakable for the defense of our homeland.”

Dar earlier on Thursday informed lawmakers in parliament that the ceasefire agreement between Islamabad and Delhi has been extended till Sunday.

“For now, these are military-to-military communications, so obviously, then political dialogue will take place,” he said. “The resolution of all issues lies there.”

India and Pakistan, both bitter rivals who possess nuclear weapons, have fought three wars since 1947 after gaining independence from British colonial India. The root cause of their conflict is the disputed Himalayan Kashmir region, which they both claim in full but administer only parts of.

Topics: Pakistan India ceasefire pakistan air force ISPR Pakistan Army Pakistan Navy

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Pakistan offers lowest-cost Hajj package under government scheme globally, says official

Pakistan offers lowest-cost Hajj package under government scheme globally, says official
Updated 15 May 2025
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Pakistan offers lowest-cost Hajj package under government scheme globally, says official

Pakistan offers lowest-cost Hajj package under government scheme globally, says official
  • Nearly 89,000 Pakistani pilgrims are expected to perform Hajj under government scheme this year
  • Pakistan has set cost of long Hajj package at Rs1,075,000 ($3,854), Rs1,150,000 ($4,122) for short one
Updated 15 May 2025
Arab News Pakistan

ISLAMABAD: Pakistan’s Director General Hajj Abdul Wahab Soomro said on Thursday that Islamabad is offering its citizens the lowest-cost Hajj package globally, vowing that authorities have aimed to prioritize pilgrims’ comfort, safety and spiritual fulfillment for this year’s pilgrimage.

Pakistan this year introduced a shortened Hajj program of 20 to 25 days to make the pilgrimage more convenient and accessible, the Ministry of Religious Affairs said earlier this year. It set the cost at around Rs1,075,000 ($3,854) for the long Hajj package and Rs1,150,000 ($4,122) for the short Hajj package, as shorter stays often incur higher airfare, premium accommodation rates, and expedited transport services, which drive up overall costs.

In a statement issued from Makkah, Soomro said the government’s Hajj Scheme for 88,380 pilgrims is being elevated to “unprecedented heights” to ensure a seamless and spiritually enriching pilgrimage, state broadcaster Radio Pakistan reported.

“Highlighting the key initiatives, he [Soomro] said our scheme offers the lowest-cost Hajj package globally,” Radio Pakistan said. “Pilgrims are now given the option to choose between single, double, or triple-bed rooms at an additional cost.”

The official said that due to the non-uniform nature of Makkah’s buildings, accommodations are allocated to Pakistani pilgrims based on pilgrim profiling to ensure optimal convenience.

He said Pakistan’s health care network, in collaboration with the Saudi German Hospital and other leading medical institutions, ensures 24/7 emergency care.

“The DG Hajj said such innovative measures and enhancements demonstrate a strong commitment to facilitating Hajj with maximum convenience at minimal cost,” the statement added.

This year’s Hajj will take place in June, with over 23,620 Pakistanis expected to perform the pilgrimage through private tour operators.

Topics: Hajj 2025

Pakistan seeks greater collaboration with US in blockchain, artificial intelligence

Pakistan seeks greater collaboration with US in blockchain, artificial intelligence
Updated 15 May 2025
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Pakistan seeks greater collaboration with US in blockchain, artificial intelligence

Pakistan seeks greater collaboration with US in blockchain, artificial intelligence
  • Pakistan Crypto Council CEO Bilal bin Saqib meets Acting US Ambassador Natalie Baker in Islamabad, says finance ministry
  • Pakistan says it plans to initiate joint programs, talent exchanges and MoUs between American companies and its startups
Updated 15 May 2025
Arab News Pakistan

ISLAMABAD: Pakistan’s Crypto Council (PCC) CEO Bilal bin Saqib met Acting US Ambassador Natalie Baker on Thursday to seek deeper collaboration with Washington in blockchain and artificial intelligence (AI), the finance ministry said.

Pakistan has increasingly sought to formalize its crypto economy amid rising interest in blockchain technologies worldwide. The country is already among the world’s fastest-growing crypto markets, ranking near the top in global adoption rates, with an estimated $300 billion in annual crypto transactions and around 25 million active users.

As part of these efforts, the PCC last month partnered with World Liberty Financial (WLF), a decentralized finance platform backed by US President Donald Trump, to advance blockchain innovation, stablecoin adoption and decentralized finance (DeFi) integration across Pakistan.

“Pakistan Crypto Council CEO meets US ambassador to advance youth collaboration in blockchain & AI,” the finance ministry’s statement said.

It added that Saqib met Baker to discuss creating bridges between US institutions and Pakistan’s entrepreneurial ecosystem. The PCC emphasized Pakistan’s commitment to becoming a globally competitive innovation hub, with blockchain and AI at the core of its future economy, the council said.

“Pakistan is home to one of the world’s youngest populations — eager, ambitious, and ready to lead the future of Web3 and AI,” Saqib said. “This is the time to invest in them, to connect them with global leaders, and to create real pipelines of opportunity between the US and Pakistan.”

The ministry said that Pakistan plans to initiate joint programs, talent exchange and strategic memoranda of understanding between American tech companies and Pakistani startups to build long-term partnerships that benefit both nations.

“The Pakistan Crypto Council remains committed to using blockchain as a tool of diplomacy, education, and empowerment — ensuring that Pakistan’s youth are not left behind but stand at the forefront of the global digital revolution,” the statement concluded.

Pakistan’s proactive stance to formalize its crypto economy follows its broader push to position itself as a hub for digital finance innovation, with 64 percent of its population under the age of 30.

Rising mobile broadband access, a booming freelance economy and increasing government interest in blockchain have accelerated the country’s Web3 adoption.

Topics: Pakistan US Ties Pakistan Crypto Council

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