Pakistan: Punjab Govt shows bidding interest in PIA, considers launching 'Air Punjab'

Lahore [Pakistan], November 3 (ANI): Following the Khyber Pakhtunkhwa (KP) government's announcement of its interest in acquiring Pakistan International Airlines (PIA), the Punjab government, led by Chief Minister Maryam Nawaz, has also expressed interest in either purchasing the national carrier or establishing a new provincial airline, tentatively named "Air Punjab."
On Saturday, Pakistan Muslim League-Nawaz (PML-N) President Nawaz Sharif confirmed that his daughter and Punjab Chief Minister Maryam Nawaz had sought his advice on whether the provincial government should pursue the acquisition of PIA or launch a new airline, Dawn reported.
"Maryam proposed that the Punjab government launch a new airline, Air Punjab, and I advised her to proceed with further consultations on the potential acquisition of the PIA," Sharif shared from New York.
Outlining her vision, Maryam Nawaz suggested that a new airline could serve major domestic and international routes, offering direct flights from Karachi, Lahore, Peshawar, and Quetta to destinations like New York, London, Tokyo, and Hong Kong. Nawaz Sharif added, "We could introduce a new airline that would offer direct flights... to New York, along with services to London, Tokyo, Hong Kong, and other international destinations." He noted that the idea was still under consideration, with the possibility of rebranding PIA under provincial management as "Air Punjab."
The proposal comes amidst ongoing discussions about PIA's future as a privatised entity. The PML-N leader commented on the current bid for the airline, valued at PKR 10 billion, while reflecting on the airline's decline. "It is disheartening to see that there are individuals among us who have contributed to PIA's downfall," he remarked, referencing challenges faced by PIA, including controversies involving pilot licenses under former PTI aviation minister Ghulam Sarwar.
"Regardless of its accuracy, was such a claim appropriate for public disclosure?" Nawaz questioned, alluding to Sarwar's previous statements about some pilots holding fake licenses.
Meanwhile, PML-N spokesperson and Punjab's senior minister Marriyum Aurangzeb clarified that discussions were ongoing, with no final decision made on whether the Punjab government would purchase PIA or create an independent airline, reported Dawn.
Sources indicated that any provincial acquisition of PIA would require substantial financial resources and an understanding of federal obligations, including Pakistan's current agreement with the International Monetary Fund (IMF). With both the KP and Punjab governments signalling interest, questions are surfacing about the federal government's inability to either effectively manage or sell the struggling airline to private entities.
Recent efforts to privatise PIA encountered a setback when the only bid submitted--by the Blue World City consortium--fell far below the government's expectations, offering PKR 10 billion compared to the PKR 85.03 billion benchmark set by the Privatisation Commission, Dawn reported.
Additionally, a letter from KP Board of Investment and Trade Vice Chairman Hassan Masood expressed KP's formal intent to participate in the bidding process on behalf of the chief minister and the people of KP.
As the provincial governments consider their options, the future of PIA hangs in the balance, highlighting the airline's ongoing struggles and the complexity of provincial versus federal interests in Pakistan's national assets. (ANI)