KARACHI: Pakistan’s Khyber Pakhtunkhwa (KP) province has formally offered to exceed the highest bid in the sale of Pakistan International Airlines (PIA), saying the national flag carrier should remain under government control to preserve its status, according to a letter from provincial authorities to federal officials that emerged on Saturday.
KP made the offer just a day after the government held the privatization process, receiving the sole bid of Rs10 billion ($36 million) from Blue World City, a real estate development firm, which fell far short of the minimum price of Rs85 billion ($305 million).
Critics, including PIA union representatives and independent analysts, called the low bid an “embarrassment” for the government, with airline employees suggesting Pakistani authorities should expand PIA’s fleet to restore its operational viability.
“On behalf of the Chief Minister ... and the people of KP, we would like to express our earnest interest in participating in the bidding process for the sale of Pakistan International Airlines (PIA),” read the letter from the provincial Board of Investment and Trade. “This letter serves as our formal intent to position the Government of KP as a competitive bidder in this strategic acquisition.”
The letter, which was addressed to Pakistan’s Privatization Minister Abdul Aleem Khan on Friday, emphasized PIA’s importance as “a critical asset that symbolizes our national identity and pride,” adding that the province wished to keep it “within the national fold.”
“The Chief Minister [Ali Amin Gandapur] has directed us to actively pursue this acquisition to ensure the airline remains under the control of the Government of Pakistan rather than transferring to any private or foreign-backed entity,” it continued.
“In line with this commitment, we are prepared to offer a bid that will surpass the current highest offer of PKR 10 Billion by Blue World Consortium, ensuring a strong and competitive position within this process,” it added.
Pakistan decided to move ahead with PIA’s privatization under terms agreed with the International Monetary Fund (IMF) for a 37-month, $7 billion bailout approved in September, aiming to divest over 51 percent of its stake in the financially struggling national carrier.
The KP administration requested a prompt meeting with federal officials to present its detailed proposal and outline its vision for PIA, affirming its readiness to proceed quickly to secure the acquisition.
Despite KP’s proposed plan, provincial ownership of PIA may not align with the privatization’s intended purpose under the IMF agreement, which is to reduce financial burdens associated with state-owned enterprises.

ISLAMABAD: The government in Pakistan’s northwestern Khyber Pakhtunkhwa province has signed an agreement with a private firm to establish a power transmission line in the province, an official said on Saturday.
The power transmission line will be established in one and a half year with a cost of Rs8 billion ($28.8 million), according to Muhammad Ali Saif, KP chief minister’s adviser on information.
In the first phase, a 40-kilometer section of the line will be built from Matiltan to Madyan in Swat to supply power to local industries and national grid.
“Industries will be provided very cheap electricity through the transmission line,” Saif said in a statement. “The completion of its first phase generate Rs7 billion for the province.”
Pakistan has enough installed capacity to meet its demand for electricity, but the South Asian country lacks adequate resources and cannot afford to invest in new infrastructure and power lines, which often result in transmission losses. 
In January 2023, the country suffered a nationwide blackout due to a frequency failure in the national grid, which happened because of a major mismatch between demand and supply. It was the second nationwide shutdown in three months. 
In November last year, the Asian Development Bank (ADB) approved $250 million loan for Pakistan to help the South Asian country deliver reliable electricity by expanding and improving its power transmission network in the Khyber Pakhtunkhwa and Punjab provinces.