Pakistan’s Flag Carrier PIA to Be Run by New Owners from April

Post by : Saif Nasser

Pakistan International Airlines, the national flag carrier of Pakistan, is expected to come under new private management from April next year, according to a senior government official. The move marks a major step in Pakistan’s long-delayed plan to privatise the struggling airline and restore its financial stability.

The decision follows a successful auction in which a consortium led by Arif Habib Corporation secured a 75% stake in PIA. The group placed a winning bid of 135 billion Pakistani rupees, exceeding the government’s reserve price of 100 billion rupees. The auction was held live on television, underlining the importance of the sale.

Muhammad Ali, the prime minister’s adviser on privatisation, said the government expects the airline to be handed over to the new owners by April, provided all approvals are granted on time. He explained that the process now requires approval from the Privatisation Commission board and the federal cabinet, which is expected within days. The contract signing is likely within two weeks, followed by a 90-day period to complete legal and regulatory requirements.

Under the deal, the government will receive about 10 billion rupees in cash upfront. It will also keep a 25% ownership stake in the airline, valued at around 45 billion rupees. This allows the state to remain involved while transferring operational control to the private sector.

The privatisation plan is designed to inject fresh capital into PIA rather than simply change ownership. Officials said the goal is to strengthen the airline, improve services, and avoid a repeat of past financial problems. The new owners are expected to invest in operations, management, and fleet improvements.

PIA has faced years of losses, high debt, and operational challenges, making several earlier attempts at privatisation unsuccessful. This latest deal is seen as a turning point in efforts to revive the airline and reduce the financial burden on the government.

If completed as planned, the transition will begin a new phase for Pakistan International Airlines under private leadership, with hopes of better efficiency, improved customer experience, and long-term sustainability.