The federal government has announced that the privatisation of Pakistan International Airlines (PIA) will be completed by December this year, marking a significant step in its economic reform plan. Officials from the Privatisation Commission informed the Senate Standing Committee on Privatisation, chaired by Senator Afnanullah, that the due diligence process is almost complete. They assured the committee that the privatisation process will strictly follow the set timeline, ensuring transparency and adherence to the government’s broader fiscal objectives.
During the briefing, officials revealed that four consortia are currently reviewing PIA’s financial accounts, aircraft fleet, and operational routes as part of the evaluation process. These reviews are aimed at determining the airline’s commercial value and identifying areas for restructuring before final bids are invited. The commission emphasized that the government remains committed to completing the sale efficiently while maintaining investor confidence and regulatory compliance.
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This privatisation effort comes as part of Pakistan’s commitments under the $7 billion International Monetary Fund (IMF) programme, which requires major reforms in loss-making state-owned enterprises. The government’s earlier attempt to privatise PIA failed after a $36 million offer fell far below the $305 million floor price, largely due to concerns over the airline’s debt, workforce, and management control. This time, the government has revised its approach, offering full divestment along with tax reliefs and debt restructuring to make the deal more attractive.
Nearly 80% of PIA’s debt has now been transferred to the state, easing the burden on potential buyers. The government has also removed sales tax on leased aircraft and introduced legal protections for investors to prevent disputes over tax or operational claims. Privatisation Minister Muhammad Ali stated that the government is targeting Rs86 billion in privatisation proceeds this year, with most of the funds expected to stay within the company to support its operational revival.
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Furthermore, growing investor interest has been observed from prominent local business groups such as Airblue, Lucky Cement, Arif Habib Group, and Fauji Fertiliser. Final bids are expected later this year once the due diligence process concludes. Meanwhile, PIA continues to rebuild its global reputation, having resumed flights to the United Kingdom and Europe earlier this year after bans were lifted, signaling gradual progress toward restoring the airline’s international credibility.