KARACHI: The government on Thursday invited expressions of interest from potential bidders by June 3 to sell its stake in Pakistan International Airlines (PIA), in line with the International Monetary Fund’s requirement to privatize loss-making state-owned enterprises (SOEs), according to a notice on the privatization ministry’s website.
The fresh bids have been called a week after the Privatization Commission Board on April 17 approved pre-qualification criteria for selecting prospective buyers for the divestment of the government’s 51 to 100 percent shares in Pakistan International Airlines Corporation Ltd. (PIACL).
“In the last financial year (FY24), PIA served approximately 4 million passengers across 30 destinations, carrying out 268 flights per week,” the ministry said in the notice aimed at attracting investors.
This marks Pakistan’s second attempt to raise funds through the privatization of the national carrier, which earlier this month reported its first operational profit of $33.48 million in over two decades.
Prime Minister Shehbaz Sharif’s previous attempt to offload a 60 percent stake in the airline failed last year, attracting only a single bid from a real estate firm that quoted well below the asking price of over $300 million.
In a bid to avoid a repeat, the government said it may offer prequalified bidders incentives such as exemption from sales tax on the induction of aircraft through lease or purchase and additional support to improve PIA’s balance sheet, including indemnification, transfer of certain liabilities and coverage for tax and legal claims, according to the notice.
Pakistan, which has repaid most of its $26 billion in external debt this year through an IMF loan and billions of dollars in rollovers from allies such as China, Saudi Arabia and the United Arab Emirates, had to shift nearly all of PIA’s legacy debt to the government’s books after bidder concerns derailed the previous privatization attempt.
The cash-strapped South Asian nation also plans to privatize PIA’s Roosevelt Hotel Corporation in New York.
The privatization board last week finalized its recommendations on the transaction structure, which will be presented to the Cabinet Committee on Privatization for approval.
The ministry added that demand in Pakistan’s under-served aviation market is expected to grow at a compound annual growth rate of around 6.2 percent over the next four years through FY29.
Pakistan seeks fresh bids for PIA stake sale by June 3
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Pakistan seeks fresh bids for PIA stake sale by June 3
- The government aims to sell as much as 100 percent shares of the airline after a failed attempt last year
- It may offer incentives like tax exemption on aircrafts purchase and liability transfers to attract investors
Following latest standoff, India calls on IAEA to take charge of Pakistan’s nukes
- India and Pakistan became nuclear powers after they conducted tit-for-tat nuclear tests in 1998
- Decades-old animosity has made the region, world's most populous, one of its most dangerous nuclear flashpoints
NEW DELHI: The International Atomic Energy Agency should take charge of Pakistan’s nuclear weapons, India’s Defense Minister Rajnath Singh said on Thursday, days after the nuclear-armed neighbors ended their worst military conflict in nearly three decades.
Deadly fighting broke out between the old enemies last week after India struck what it said were “terrorist camps” in Pakistan in retaliation for an attack in Indian Kashmir last month that killed 26 men, which it said was backed by Pakistan.
Islamabad had denied the allegations and both countries sent missiles and drones into each other’s airspace in the days that followed, before they reached a truce on Saturday.
“Are nuclear weapons safe in the hands of such an irresponsible and rogue nation?” Singh said while addressing soldiers in Indian Kashmir’s summer capital Srinagar. “I believe that Pakistan’s nuclear weapons should be taken under the supervision of IAEA.”
There was no immediate response from Pakistan to Singh’s comment.
The IAEA is a Vienna-based UN watchdog which monitors nuclear programs to ensure they are peaceful.
India and Pakistan became nuclear powers after they conducted tit-for-tat nuclear tests in 1998 and their decades-old animosity has made the region — the world’s most populous — one of its most dangerous nuclear flashpoints.
The latest military conflict between the South Asian neighbors spiraled alarmingly on Saturday and there were briefly fears that nuclear arsenals might come into play as Pakistan’s military said a top body overseeing its nuclear weapons would meet.
But the Pakistani defense minister said no such meeting was scheduled.
Military analysts said this may have been Pakistan’s way of hinting at its nuclear option as Islamabad has a “first-use” policy if its existence is under threat in a conflict.
Indian Prime Minister Narendra Modi said on Monday that India would strike at “terrorist hideouts” across the border again if there were new attacks on India and would not be deterred by what he called Islamabad’s “nuclear blackmail.”
Pakistan rejected Modi’s statements as being “provocative and inflammatory assertions,” saying it represents a dangerous escalation.
Hindu-majority India and Muslim-majority Pakistan have fought three wars in the past, two of them over the Himalayan region of Kashmir, which they both claim in full but rule in part.
India also blames Pakistan for supporting militants battling security forces in its part of Kashmir, but Islamabad denies the accusation.
UAE’s LuLuFin partners with Pakistan’s ABHI fintech for financial inclusion, remittances
- Last year, ABHI secured $15 million in debt financing to expand UAE operations
- In 2023, it was selected as one of the Future 100 companies of the UAE
KARACHI: Pakistani fintech ABHI, which expanded its operations to the UAE and Saudi Arabia last year, has partnered with leading global financial services conglomerate, LuLu Financial Holdings, to enhance financial inclusion and remittance solutions, ABHI said in a statement on Thursday.
Founded in 2021, ABHI raised $17 million in a Series A funding round led by Speedinvest. Last year, it secured a whopping $15 million in debt financing through a credit facility by Shorooq partners and Amplify Growth Partnership companies to expand its operations in the United Arab Emirate. It also operates in Saudi Arabia and Bangladesh.
The fintech company provides employees an opportunity to withdraw their earned salary any day through its Earned Wage Access facility and other products. In 2023, it was selected as one of the Future 100 companies of the UAE.
“As part of the partnership, workers in the UAE will be able to access their earned wages instantly and remit funds to their families back home through LuLu Exchange — without having to wait for payday,” the ABHI statement said on the partnership with LuLuFin.
“Through the initiative, workers in the UAE will benefit from Earned Wage Access and Send Now, Pay Later services, giving them greater financial flexibility and control over their income.”
By offering instant access to earned wages and enabling timely remittances, the partnership addresses a key financial need among expatriate workers, empowering them to support their families with greater ease and security, ABHI said.
The Pakistani fintech will provide the operational framework for LuLuFin, enabling customers to access their earned wages before their scheduled payday and allowing employees to send money internationally instantly with the flexibility to defer payment.
The service will be rolled out across all major corridors, with the launch for Pakistani customers scheduled for May.
“This partnership with ABHI represents a bold step toward redefining financial connectivity for global diasporas. By leveraging cutting-edge technology, we aim to create a seamless bridge for expatriates to support their families, setting the stage for a future where financial inclusivity knows no borders,” Thampi Sudarsanan, Chief Executive Officer, LuLu Exchange UAE, said.
Omair Ansari, the Co-Founder & CEO of Abhi Middle East Limited, said the partnership with LuLu Financial Holdings marked a “significant step in enabling expatriates to access their hard-earned wages seamlessly and support their families back home without financial strain.”
“By integrating ABHI’s technology with Lulu’s extensive market expertise, we are dedicated to promoting financial inclusion and providing underserved communities with greater flexibility and convenience in managing their finances,” Ansari added.
In January, ABHI announced it had acquired FINCA microfinance bank to improve financial inclusion for millions of Pakistanis across the country.
FINCA Pakistan, part of a global FINCA network, operates in 108 cities across Pakistan, providing state-of-the-art deposit and payment solutions, including micro-credit facilities aimed at improving livelihoods.
In February, ABHI launched the ABHI Microfinance Bank in collaboration with TPL Corp.
Pakistan launches second phase of Hajj flight operations
- Over 89,000 pilgrims to travel under government scheme during 33-day-long Hajj flight operations
- Pilgrims will travel to Makkah and Madinah via 342 flights, last one to depart Pakistan on May 31
ISLAMABAD: Pakistan has launched the second phase of Pakistan Hajj flight operations for pilgrims traveling under the government-sponsored scheme, state broadcaster Radio Pakistan reported on Thursday.
Over 89,000 pilgrims will travel under the government’s scheme during Pakistan’s 33-day-long Hajj flight operations, which started on April 29. Pilgrims will travel to Makkah and Madinah via 342 flights in total, with the last one departing from Pakistan on May 31.
On Wednesday, as the second phase of operations started, Minister for Religious Affairs and Interfaith Harmony Sardar Muhammad Yousaf received 305 pilgrims at Jeddah airport. They had arrived directly from Islamabad under the Makkah Route Initiative.
“Almost 46,000 pilgrims will arrive in Makkah via Jeddah by the 31st of this month,” Radio Pakistan reported. “They will then proceed to Madinah after performing Hajj.”
The Makkah Route Initiative is designed to streamline immigration processes by enabling pilgrims to complete official travel formalities at their departure airports. Initially tested in Islamabad in 2019, the program was later expanded to Karachi, benefitting tens of thousands of Pakistani travelers. This saves pilgrims several hours upon arrival in the Kingdom, as they can simply enter the country without having to go through immigration again.
Around 50,500 Pakistani pilgrims will travel to Saudi Arabia under the initiative this year. The scheme was launched in 2019 by the Saudi Ministry of Hajj and Umrah and has been implemented in five countries: Pakistan, Malaysia, Indonesia, Morocco and Bangladesh.
This year’s annual pilgrimage will take place in June, with nearly 89,000 Pakistanis expected to perform Hajj under the government scheme and over 23,620 Pakistanis through private tour operators.
Pakistan moves to formulate ‘national innovation framework’ amid climate change, food security concerns
- Shehbaz Sharif instructs relevant officials to ensure the provision of easy agricultural loans to farmers
- He asks his administration to present an agricultural innovation plan, promote the use of technology
ISLAMABAD: Prime Minister Shehbaz Sharif on Thursday emphasized the need to strengthen agricultural research and directed the formulation of a national innovation framework amid growing concerns over climate change and food security.
Sharif was chairing a high-level meeting to review reforms in the agriculture sector. He said the government was modernizing farming practices to achieve self-sufficiency and unlock the sector’s full economic potential.
Pakistan has in recent years experienced a series of extreme climate events, including heatwaves, droughts and floods. In 2022, catastrophic floods submerged a third of the country, killing around 1,700 people and causing more than $35 billion in economic losses.
Last year, Pakistan deepened agricultural cooperation with Beijing during Sharif’s visit to China, where both sides agreed to train Pakistani agriculture experts and promote the use of modern technology and innovative farming practices.
“Ensure the provision of agricultural loans to farmers on easy terms,” Sharif instructed relevant officials, according to a statement issued by his office after the meeting.
“Focus on agricultural research to increase national productivity,” he added. “We need a sustainable and long-term agro-industrial development policy to boost both agriculture and forestry, which are essential to tackling climate change.”
During the meeting, the prime minister noted that Pakistan had been blessed with fertile land, capable experts and hardworking farmers, stressing the need for a coordinated strategy in consultation with all stakeholders, including provincial governments.
He instructed relevant ministries to present a National Agricultural Innovation Plan, expedite reforms in the seed certification system and devise an effective strategy to promote high-quality seeds.
He also called for the creation of a comprehensive regulatory framework to support innovation and transparency in the sector.
“Promoting modern technology in agriculture is our priority,” the PM said, reiterating his government’s commitment to transforming the sector to drive economic growth and build climate resilience.
A working group established to develop agricultural reforms also presented its proposals during the meeting, the PMO said.
Pakistan PM reaffirms commitment to ceasefire with India in meeting with Azerbaijani envoy
- Shehbaz Sharif calls Pakistan a ‘peace-loving nation’ that is ready to defend its sovereignty
- He says Azerbaijan’s support during the standoff reflected its ‘enduring friendship’ with Pakistan
ISLAMABAD: Prime Minister Shehbaz Sharif on Wednesday reaffirmed Pakistan’s commitment to a ceasefire understanding with India during a meeting with Azerbaijani Ambassador Khazar Farhadov, while also warning that the country remained ready to defend its sovereignty in case of future aggression.
The meeting came days after cross-border hostilities between Pakistan and India were brought to a halt under a ceasefire agreement announced by US President Donald Trump.
According to state media, Sharif described the development as consistent with Pakistan’s peaceful posture.
“Pakistan is a peace-loving nation and in this spirit, agreed to accept the ceasefire understanding with India,” Sharif said, according to the Associated Press of Pakistan (APP).
He also praised the armed forces for the successful conduct of Operation Bunyanum Marsoos, calling it a “historic victory” for the nation.
The prime minister also thanked Azerbaijani President Ilham Aliyev and the people of Azerbaijan for their “unwavering solidarity” during the recent tensions, calling it a reflection of the “enduring friendship” between the two countries.
Pakistan and Azerbaijan maintain close political and defense ties, with expanding cooperation in energy, trade and investment.
Sharif described Aliyev’s visit to Islamabad in July 2024 as a key milestone, followed by his own visit to Baku in February, which helped open new avenues of bilateral collaboration.
Ambassador Farhadov congratulated the prime minister and the Pakistani nation on the success of the military operation and reaffirmed his country’s support for regional peace.
He said President Aliyev placed high importance on bilateral relations and expressed commitment to enhancing cooperation across all areas of mutual interest.
