four companies authorized to acquire 75% of the capital

ISLAMABAD:

Four companies have been shortlisted to participate in the upcoming privatization of Pakistan International Airlines, with 75 percent of the national carrier’s shares expected to be auctioned soon.

The name and branding of PIA will remain unchanged after privatization. According to the proposed business plan, the airline’s fleet will increase from 18 to 38 operational aircraft within four years.

According to the press release from the Prime Minister’s Office, Prime Minister Muhammad Shehbaz Sharif chaired a high-level meeting on PIA affairs. He ordered that all stages of the privatization process be completed quickly and transparently.
He also directed officials to prepare a strategy to increase the number of operational aircraft in PIA’s fleet and ensure flights depart on time.

During the meeting, officials provided a detailed briefing on the privatization of PIA and the associated business plan. They informed that four parties have been pre-qualified for the upcoming auction, which will cover 75 percent of PIA’s shares.

It was emphasized that the name and theme of the airline will not be changed as part of the privatization process.

The business plan aims to expand PIA’s operational fleet from 18 aircraft to 38 by 2029. Currently, the national airline flies to over 30 cities across Pakistan. Under the new plan, PIA’s services are expected to cover more than 40 cities by 2029.

The meeting was attended by Federal Minister for Defense Khawaja Asif, Federal Minister for Law and Justice Azam Nazir Tarar, Federal Minister for Economic Affairs Ahsan Khan Cheema, Federal Minister for Finance and Revenue Muhammad Aurangzeb, Adviser to Prime Minister on Privatization Muhammad Ali and other senior government officials.

Government’s renewed efforts for privatization of PIA

The government’s renewed efforts to privatize PIA follow the failure of a bid last year, when a single bid – 10 billion rupees ($36 million) from real estate developer Blue World City – was received for a 60 percent stake. The offer, well below the government’s floor price of 85 billion rupees ($305 million), was rejected.

The Privatization Commission reopened the process in April 2025, inviting local and international investors to register their interest for a 51 to 100 percent stake.

The renewed process attracted interest from eight entities, four of which – including leading business groups and a private education operator – were shortlisted following federal approval in July. The final call for tenders and negotiations are expected before the end of the current year.

The sale of PIA is expected to mark Pakistan’s first major privatization in almost two decades. Reviving loss-making state-owned enterprises like PIA remains a key structural objective under the International Monetary Fund’s ongoing $7 billion bailout program.