The privatization efforts of Pakistan International Airlines (PIA) have come under scrutiny following revelations of significant government spending. An investigation has uncovered that approximately Rs. 2 billion from the national treasury has been spent on the privatization process.
Consultancy Expenditures
The government has made substantial payments to international consulting firms for various aspects of the privatization process. A total of $1.35 million was allocated for securing successful bidders and completing the bidding process.
Breakdown of Consulting Fees:
- $940,000 for restructuring report preparation
- $940,000 for memorandum and roadshow activities
- $625,000 for scheme arrangement with SECP
- $625,000 for project charter development
Failed Privatization Attempt
Despite these significant expenditures, the privatization process has not achieved its intended objectives. The auction process failed to attract multiple bidders, with only one bidder coming forward with an offer of Rs. 10 billion, falling significantly short of expectations.
This revelation raises serious questions about the effectiveness of the privatization strategy and the utilization of public funds in the process. The substantial spending on international consultancy services without achieving the desired outcome highlights the challenges facing PIA’s privatization efforts.
