N the second round, the government says it is going to make prospective buyers of PIA an offer they can`t refuse. What that offer is going to be will not be known until the authorities call expressions of interest for the sale of the national carrier three months from now. However, from what the outgoing privatisation minister said the other day, it is clear that the authorities plan to address most of the concerns of investors interested in acquiring the debt-ridden airline. These concerns, including but not limited to 18pc GST on the acquisition of new aircraft and transfer of a portion of the existing debt liabilities to buyers, were enough to scare away some bona fide investors days before the botched first attempt to sell 60pc of the government shareholding in the company, leaving behind only one real estate developer, who offered peanuts, and a hole of $4.3m in the exchequer.

Something has changed since. Reports suggest that some major business groups from Karachi and Lahore are gearing up to bid for the airline and inject the required equity of half a billion dollars to expand the fleet and operations over the next several years if an unencumbered offer is made. Restarting PIA`s profitable European operations followed by its resumption of flights to the UK and US will be added attractions for buyers.

PIA still has the potential to make a rapid recovery if injected with fresh equity to expand its operations and managed professionally something which is not possible as long as the company remains in the control of a parasitic bureaucracy. The successful sale of loss-making PIA is crucial for privatisation not just for the airline`s own revival the alternative is its liquidation but also for the resumption of the overall process of privatisation of SOEs. The sale must be crafted in a manner that attracts businessmen who not only revive the airline but also provide credibility to the privatisation programme.