An overseas Pakistani group has made an offer of Rs100 billion for the national airline as the South Asian country seeks to sell loss-making state-owned enterprises to improve the economy.

“I am writing to formally present an offer to acquire Pakistan International Airlines (PIA) at a valuation of PKR 100 billion,” Al-Nihang’s Group CEO Muhammad Ali Faqir said in a letter to the three ministries of Pakistan.

Cash-strapped Pakistan is looking to offload a 51-100% stake in debt-ridden PIA to raise funds and reform bleeding state-owned enterprises as envisaged under a $7 billion International Monetary Fund programme.

In May this year, Finance Minister Muhammad Aurangzeb clarified that there was no such thing as a “strategic SOE” and vowed to accelerate the privatisation agenda.

The overseas group offer comes after the government failed to attract enough bids for the national airline at the bidding ceremony on October 31. The Privatisation Commission attracted only Rs10 billion bid for the national flag carrier against the valuation of Rs85 billion.

The email was sent to ministers of privatisation, aviation, and defence. It was also sent to the Establishment Division.

According to Faqir, his proposal to revitalise PIA includes enhancing its operational capabilities, expanding revenue streams, and positioning the airline as a leader in the regional aviation market.

The business group would focus on engineering and technical services, exclusive cargo operations, aviation training and professional development.

“By fully utilising these strengths, we aim to significantly boost foreign exchange inflows, contribute to Pakistan’s economic growth, and foster an environment that attracts international business and partnerships,” it said.

The Al-Nihang’s Group has set seven conditions, including Rs100 billion for the acquisition of PIA.

“Al-Nihang’s Group will assume responsibility for all existing PIA liabilities, estimated at Rs250 billion, and will ensure full payment of outstanding obligations as part of this proposal,” it said.

The proposal added that all PIA employees would be retained for two to three years, with the company committing to the “continued payment of their salaries and proportionate fringe benefits.”

According to the firm, it would acquire the full shareholding of PIA in accordance with the terms outlined in the tender proposal, assuming comprehensive ownership.

Moreover, a “strategic expansion” of PIA’s aircraft fleet would be undertaken to enhance service capacity and market reach.

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“The passenger, cargo, and engineering services divisions will be fully revived and modernised, ensuring PIA’s operational efficiency and competitive advantage in the aviation market,” said the email.

Lastly, it said that the company is prepared to “satisfy all requirements of due diligence immediately.”

The firm added that it was committed to collaborating with the relevant authorities to meet the conditions and support the airline.