The PIA privatisation efforts are back, and the chances of the deal moving forward this time are high. The previous round was spearheaded by the political leadership of the ruling party, PML-N, but now the establishment is in control. In the failed attempt, multiple conditions were demanded by potential bidders, and a few of them are now being addressed. These, along with the opening of the European route, are encouraging investors to seriously consider buying an ailing airline.

The political leadership of coalition partners was more focused on saving their dwindling political capital, which undermined the commitment to privatize PIA. This is one reason they ignored the genuine demands of serious bidders, leaving only a sole real estate player to bid—a player who lacked the financial strength to qualify.

In the last round, the overall atmosphere was unfavorable. Investors were disgruntled, and trust between them and the authorities was eroded, partly due to contentious negotiations with IPPs (independent power producers). Now, the IPPs (1994 and 2002 policies) issue has been resolved, and their owners appear to have moved on, with some even participating in........

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