Pakistan Sells National Airline for $482M in Key IMF-Mandated Privatization
Arif Habib Consortium has won the bid to acquire 75% of Pakistan International Airlines for $482 million. The sale is a key part of the IMF's conditions for a $7 billion loan program and serves as a major test for Pakistan's wider privatization drive.
Pakistani stockbroker Arif Habib Consortium has won the bid to acquire a 75% stake in national carrier Pakistan International Airlines for $482 million, marking a critical step in the nation's ambitious privatization plan. The deal, announced Tuesday in Islamabad after an open sale with three bidders, is a cornerstone of the economic reforms demanded by the International Monetary Fund.
The Price of a Bailout
This privatization isn't just a business transaction; it's a direct consequence of the $7 billion loan program Pakistan is undergoing with the IMF. The fund has mandated the offloading of numerous loss-making state-owned enterprises (SOEs) to shore up the country's finances. Pakistan International Airlines (PIA), burdened by years of debt and operational inefficiencies, was among the highest-profile assets on the list.
A Litmus Test for Foreign Investment
Global investors are watching this deal closely. It's seen as a litmus test for the government's commitment to its reform agenda, which includes the divestment of over 20 other SOEs. The success of PIA's turnaround under new ownership could either build significant momentum for future privatizations or dampen investor appetite for Pakistani assets.
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