The Privatisation Commission informed the Senate Standing Committee that Pakistan International Airlines’ (PIA) privatisation process is progressing steadily and is expected to conclude by December 2025. Officials said that the site due diligence process is nearly complete and four consortia are actively reviewing PIA’s accounts, aircraft, and routes. The government aims to finalise the deal under the IMF’s $7 billion bailout conditions, with steps taken to ensure transparency and investor confidence.
ISLAMABAD: The government is on track to complete the privatisation of Pakistan International Airlines (PIA) by December 2025, according to officials from the Privatisation Commission who briefed the Senate Standing Committee on Privatisation, chaired by Senator Afnanullah, on Thursday.
The commission’s representatives stated that the site due diligence process for the national flag carrier is nearing completion. They assured that the transaction will be finalised within the scheduled timeline as per the government’s commitment under the International Monetary Fund (IMF) programme.
Four consortia are currently participating in the process, conducting a comprehensive review of PIA’s financial records, aircraft fleet, and international routes. The commission emphasised that all measures are being taken to ensure transparency, fairness, and timely execution.
This development marks a renewed effort after an earlier attempt to privatise the airline failed when the highest bid of $36 million by a real estate firm fell far short of the $305 million floor price. The government has now made major adjustments, including full divestment, removal of sales tax on leased aircraft, and partial debt relief — with around 80% of PIA’s debt transferred to the state.
Privatisation Minister Muhammad Ali stated that Pakistan targets Rs86 billion in privatisation proceeds this fiscal year, noting that in the previous round, 15% of proceeds were allocated to the government while the remainder stayed within the company.
Interest has been shown by local business giants such as Airblue, Lucky Cement, Arif Habib Group, and Fauji Fertiliser. Final bids are expected later this year.
The PIA recently resumed flights to the United Kingdom after more than five years, following the lifting of a ban imposed due to a fake pilot licence scandal. European routes were also reopened earlier this year after a four-year suspension.
The successful privatisation of PIA is viewed as a critical milestone in Pakistan’s broader economic reform and IMF-backed restructuring programme aimed at reducing state losses and improving efficiency across public enterprises.
