Pakistan has pledged to the International Monetary Fund (IMF) that it will privatize the loss-making Pakistan International Airlines (PIA) by July 2025, following a failed attempt last year, The Express Tribune reported on Tuesday.

This assurance comes as an IMF team reviews Pakistan’s $7 billion loan program, with the next $1 billion tranche hinging on progress, including divestment of unprofitable state entities.

Last October, Pakistan’s effort to sell a 51-100% stake in PIA floundered when the sole bid—Rs 10 billion from a local real estate firm—was rejected as inadequate. The IMF has pressed Pakistan to offload such bleeding assets, but economic woes have deterred investors, stalling the privatization agenda.

In a recent briefing, federal authorities told the IMF they aim to privatize five to seven entities, including PIA, three financial institutions, and three power distribution companies—Faisalabad, Islamabad, and Gujranwala—by December 2025.

The Privatisation Ministry updated the IMF that PIA’s sale is targeted for July, with market sentiment being gauged before an Expression of Interest is issued by March’s end. Despite skepticism after the last flop, three potential bidders have emerged, including two who previously withdrew over tax and liability disputes.

The IMF has now relaxed conditions—waiving an 18% sales tax on aircraft leases and Rs 45 billion in liabilities—while PIA’s reopened European routes bolster the deal’s appeal.

Beyond PIA, Pakistan informed the IMF of plans to sell the First Women Bank Limited to the UAE by May under a government-to-government deal, and the Zarai Taraqiati Bank Limited by November, with a financial advisor soon to be hired.

The House Building Finance Company sale is slated for next month, though past deadlines have slipped. Amid economic strain, these commitments signal Pakistan’s push to meet IMF demands and stabilize its finances.