Pakistan approved the eligibility criteria for potential buyers seeking to acquire majority stakes in Pakistan International Airlines (PIA), setting a minimum net worth requirement of Rs30 billion or $100 million for the buyer.
The Privatisation Commission's board, chaired by Privatisation Minister Abdul Aleem Khan, approved the prequalification criteria for interested bidders and established a prequalification committee.
This decision came on the same day the government invited bids for the sale of 51% to 100% stakes in PIA, with a deadline of May 3rd for the submission of Statements of Qualification by investors. The Expression of Interest and draft Request for Statement of Qualification (RSOQ) were released by the Privatisation Commission to attract potential investors.
According to the approved financial criteria, bidders must have a minimum net worth of Rs30 billion or $100 million based on the latest financial accounts. In the case of a consortium bidding, the combined net worth should be Rs30 billion, with the lead bidder having a net worth of at least Rs8 billion or $25 million.
However, some observers find this limit relatively low considering the substantial investment needed to acquire the national flag carrier and expand its operations over the medium term.
Another criterion requires the bidding consortium to demonstrate that non-airline enterprises have a minimum aggregate annual revenue of Rs200 billion or $700 million.
The Privatisation Commission's board, chaired by Privatisation Minister Abdul Aleem Khan, approved the prequalification criteria for interested bidders and established a prequalification committee.
This decision came on the same day the government invited bids for the sale of 51% to 100% stakes in PIA, with a deadline of May 3rd for the submission of Statements of Qualification by investors. The Expression of Interest and draft Request for Statement of Qualification (RSOQ) were released by the Privatisation Commission to attract potential investors.
According to the approved financial criteria, bidders must have a minimum net worth of Rs30 billion or $100 million based on the latest financial accounts. In the case of a consortium bidding, the combined net worth should be Rs30 billion, with the lead bidder having a net worth of at least Rs8 billion or $25 million.
However, some observers find this limit relatively low considering the substantial investment needed to acquire the national flag carrier and expand its operations over the medium term.
Another criterion requires the bidding consortium to demonstrate that non-airline enterprises have a minimum aggregate annual revenue of Rs200 billion or $700 million.