New Delhi: The economy of India's neighboring country Pakistan is continuously deteriorating. There is a shortage of cash in Pakistan, to meet which the Pakistan government is trying to improve its economy by selling government enterprises. In such a situation, now the Pakistan government has decided to privatize its national airline.

The privatization process of Pakistan International Airlines has started. Actually, the condition of this Pakistani airline is not good. Last year, the airline had run out of payment for fuel, after which the airline's operations were reduced. According to media reports, Pakistan International Airlines is the fourth largest loss-making company of Pakistan.

Who placed the bid

The privatization process of Pakistan's airline company started from 31 October 2024. In this, the airline received only one bid. Yes, real estate group Blue World City () bid $ 36 million for a 60 percent stake. This bid is much lower than the government's expectation and the airline's minimum price.

The privatisation committee had fixed the minimum price of the auction at around $306 million. In such a situation, the bid made by Blue World City is 8.5 times the price of $306 million. Six companies were shortlisted for the auction of the airline, but these companies did not deposit the 'earnest money' due to which they are not eligible to bid.

Blue World Group is planning to restart the operations of Pakistan International Airlines. For this, they want Chinese and Turkish investors to provide them financial support.

Airline stock situation

"We are considering the government's price. But we will stick to the best price of Rs 10 billion," Blue World City owner Saad Nazir was quoted as saying by news agency Tribune. The airline's auction was broadcast live.

The airline's shares were trading higher at the time of auction, but as soon as the auction session ended, PIA shares fell by 5 per cent.

Many changes were being demanded

News agency ANI, citing ARY News, reported in early October last month that the companies were demanding changes in the bidding conditions. The main demand among these was to sack all the employees of the airline and take over 75% of the airline.