The privatization of Pakistan’s national airline PIA has once again been postponed. The process is now expected to begin during the last week of December, instead of the first week as previously planned.
The Privatization Commission announced that the privatization of PIA is now expected to take place by the end of December. PIA sources said that companies said to be interested in acquiring PIA include Fauji Fertilizer, Habib Rafique, Younus Brothers and Airblue.
According to PIA sources, four companies have been qualified to participate in the privatization process.
Any successful bidder will have to make an additional investment of Rs30 to 40 billion. However, PIA’s domestic and international properties are excluded from the privatization and have been transferred to PIA Holdings Company. The privatization will only involve the airline’s four main offices in Islamabad, Karachi, Peshawar and Rawalpindi.
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.
PIA made a pre-tax profit of over Rs11.5 billion in the first six months of the current financial year, operating with just 14-16 aircraft on domestic and international routes. Last year, the airline made a profit of Rs 26.2 billion.
The airline continues to operate flights to destinations including Canada, the United Kingdom, France, Saudi Arabia and the United Arab Emirates, despite a reduced fleet.
PIA has a total of 32 planes, but half are currently grounded due to engine and spare parts problems. If these planes were operational, the airline could earn two to three billion rupees more than last year.
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.
Government’s renewed efforts for privatization of PIA
The government’s renewed efforts to privatize PIA come after a failed takeover bid last year, when only one offer – 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.
