Reports of Gulf funding to aid Pakistan’s efforts in privatising its airlines come a month after the Prime Minister Shehbaz Sharif’s visits to Qatar.
The Pakistani government is intensifying its efforts to privatise the country’s national carrier, Pakistan International Airlines (PIA), drawing the interest of Gulf states. Their involvement could provide the momentum needed to finalise the deal.
Sources cited by Pakistan’s ARY News indicate that Islamabad is accelerating privatisation efforts through government-to-government (G2G) agreements, with the goal of finalising the deal by December 31.
“According to informed sources, both Abu Dhabi and Qatar have shown keen interest in PIA privatisation, signalling a potential opportunity for foreign investment. The government is in active negotiations with these countries to finalise the terms of the deal,” ARY News reported.
As part of its broader efforts to attract foreign investment, Pakistan’s Securities and Exchange Commission is reportedly offering substantial incentives to potential investors interested in acquiring shares of PIA.
The flag-carrier has been facing turbulence, incurring a “loss of approximately Rs 220 billion ($792m) over the past four and a half years due to the ban on flight operations, particularly on European routes,” ARY News cited sources as saying.
The South Asian country, surrounded by India, Afghanistan, Iran and China, has been looking for bailout as it reels under economic downturn amid tumultuous political developments over the last few years.
In October, Pakistan’s Prime Minister Shehbaz Sharif came to Doha on an official two-day visit, where he met Qatar’s Amir Sheikh Tamim bin Hamad Al Thani and discussed bilateral relations.
The Pakistani prime minister also met with Qatar’s Prime Minister and Minister of Foreign Affairs, Sheikh Mohammed bin Abdulrahman Al Thani, where he praised Qatar’s role in encouraging Pakistan’s economic growth.
Sharif’s delegation also sat down with Qatar Investment Authority and the Qatar Businessmen Association to discuss investment opportunities in Pakistan.
Following Sharif’s trip to Doha, Pakistan’s Information Minister Attaullah Tarar announced that Qatar had pledged to invest $3bn in several sectors in Pakistan, including trade, investment, culture and economy.
Prior to his trip to Doha on October 31, the Pakistani delegation was in Riyadh where Sharif met with Saudi Crown Prince Mohammed bin Salman. During the trip, Saudi Arabia announced an additional $600m investment in Pakistan, bringing the total to $2.8bn.
