Turkish Airlines reportedly mulls buying Pakistan International Airlines
Airplanes of Turkish Airlines sit on a tarmac, during the outbreak of the coronavirus disease (COVID-19), at Istanbul Airport, Türkiye March 29, 2020. (Reuters/Umit Bektas)
Turkish Airlines has expressed interest in purchasing Pakistan International Airlines (PIA), according to Pakistan‘s Finance Minister Ali Pervaiz Malik.
The announcement came during an interview on Pakistan’s Geo News. This interest comes as Pakistan prepares for the auction of PIA, which is scheduled for Oct. 1, 2024.
Turkish Airlines among 6 pre-qualified bidders
PIA, once regarded as one of the world’s leading airlines, has struggled with significant financial difficulties over the years. The airline is currently burdened with a debt of approximately PKR 800 billion (around $2.9 billion). Despite multiple government bailouts, PIA has been unable to recover financially.
The Privatization Commission of Pakistan has pre-qualified six bidders for the upcoming auction, including local airlines Fly Jinnah and Air Blue Limited. Minister Malik noted, “A Turkish airline has shown interest in purchasing PIA,” but did not specify which airline from Türkiye is involved. Multiple sources claim it’s the Turkish Airlines.
Economic reforms and political stability key to success
Minister Malik highlighted that ongoing economic reforms are essential for attracting investments and stabilizing Pakistan’s economy. “Investments will continue to come as macroeconomic stability comes,” he stated. He emphasized that the completion of the International Monetary Fund (IMF) program is expected soon, which will open doors to global financial institutions and create opportunities for the country.
However, he also pointed out that political stability is crucial for economic progress. “As long as there is no stability in the political environment and no decrease in the political temperature, we may not be able to show progress in different sectors of the economy,” Malik said. He urged all political parties to work together and respect state institutions to solve the challenges facing Pakistan.
