Pakistan on Tuesday kicked off a televised auction for state-owned Pakistan International Airlines (PIA) as the government attempts to advance long-delayed reforms mandated under its International Monetary Fund (IMF) programme.

Bids for a majority stake in PIA are scheduled in two phases, with submissions due around 10.45 am (0545 GMT), followed by a public bid-opening ceremony later in the day, officials said.

The auction marks Pakistan’s second attempt to privatise the once-storied flag carrier after a televised bidding process last year collapsed. That effort failed when a solitary bid came in far below the government’s reference price, derailing what would have been Pakistan’s first major privatisation in nearly two decades.

Three domestic bidders are expected to participate in Tuesday’s auction after the military-linked Fauji Fertilizer withdrew from the process, Privatisation Minister Muhammad Ali told digital media outlet Nukta in an interview last week.

Under the transaction structure, the government is open to selling up to 100% of PIA, with any stake above 75% attracting a 15% premium, local media reported.

Last year, the government had set a minimum price of $305 million for a 60% stake but received just one bid of $36 million from real estate developer Blue World City. The bidder declined to raise its offer, citing concerns over PIA’s financial health and what it described as “significant leakages.”

Several pre-qualified groups told Reuters at the time that they chose not to bid due to worries about policy continuity, unattractive terms, and doubts over the government’s ability to honour long-term commitments, especially after Islamabad moved to renegotiate sovereign-guaranteed power contracts.

Since then, PIA’s outlook has improved. The government has assumed most of the airline’s legacy debt, the carrier has posted its first pre-tax profit in two decades, and both Britain and the European Union have lifted a five-year ban that had cut PIA off from its most lucrative routes.

The reopening of these routes could significantly boost revenues and support a higher valuation than in last year’s failed auction, analysts and government officials said.

The proposed sale of PIA is part of a broader privatisation drive under Pakistan’s IMF bailout programme, which also includes plans to offload stakes in state-owned banks, power distribution companies, and other loss-making enterprises as the government seeks to curb fiscal drain and restore investor confidence.