Pakistan's PIA Privatization in Crisis: Army-Backed Bidder Withdraws, IMF Deal at Risk

• Pakistan International Airlines (PIA) privatization faces deep crisis as Army-backed Fauji Fertilizer withdraws from bidding.
• This withdrawal is a major setback, as military-backed companies instill confidence among investors; only three major bidders remain.
• The December 23 auction is crucial for Pakistan to meet IMF conditions for its $7 billion bailout package.
• The successful bidder will acquire a 75% stake in PIA, with 92.5% directly to the investor and 7.5% initially with the government.
• Government offers incentives like absorbing a large portion of PIA's debt and sales tax exemptions to attract investors.

Why It Matters: Pakistan's crucial PIA privatization faces uncertainty after military-backed bidder pulls out, jeopardizing IMF deal.