In a renewed push to privatise its loss-plagued national airline, the Government of Pakistan has announced a fresh bidding process for Pakistan International Airlines (PIA), inviting expressions of interest (EOIs) from potential investors. The move comes as part of Pakistan’s broader economic reform agenda under its $7 billion International Monetary Fund (IMF) programme, which mandates divestment from struggling state-owned enterprises (SOEs).
The Privatisation Commission (PC) issued a formal advertisement on Thursday, calling on companies, firms, legal entities, or consortia to submit EOIs along with a non-refundable processing fee of $5,000 or Rs1,400,000. The final date for submission is June 3, 2025, by 4:00 PM. For consortia, only one member is required to pay the processing fee.
This marks the second attempt by the government to offload a 51–100% stake in PIA. The first effort faltered in 2024 when the Blue World City consortium offered just Rs10 billion for a 60% stake—far below the government’s valuation of Rs85.03 billion. The deal was rejected, prompting a new call for bidders after restructuring the airline.
PIA’s Financial Turnaround
In a notable turnaround, PIA recently posted a net profit of Rs26.2 billion in 2024, its first profit in over two decades. It also recorded an operational profit of Rs9.3 billion. The airline last reported profitability in 2003 but had incurred consistent losses since then.
Airline Restructuring: Core vs. Non-Core
Following a Scheme of Arrangement (SOA) approved by the Securities and Exchange Commission of Pakistan (SECP) on May 3, 2024, PIA was restructured. The airline’s core operations—including air transport, ground handling, cargo, engineering, and inflight services—remain under PIA, while non-core assets and liabilities were moved to PIA Holdco, a newly created holding company.
PIA is now a wholly-owned subsidiary of PIA Holdco, which is listed on the Pakistan Stock Exchange. The restructuring ensures that bidders invest only in the streamlined, core business operations of the airline.
Operational Snapshot
PIA currently operates as a full-service airline serving 30 destinations with approximately 268 weekly flights, and 4 million passengers annually. It offers integrated services including ground handling, flight training, cargo services, and flight kitchen operations.
Government’s Outlook
The Ministry of Finance and the Privatisation Commission see this as a critical step to boost investor confidence, reduce the financial burden of inefficient SOEs, and inject fresh capital and management into PIA. By offloading its stake, the government aims to modernise the airline, improve service delivery, and make it competitive on the global stage.
