ISLAMABAD: Pakistan International Airlines’ privatisation process is entering its next phase, with officials indicating that the government has an option to divest its remaining 25 per cent stake — valued at around Rs45 billion — within a three-month window, following the transfer of management control to a private consortium.
According to PIA officials, the airline is now operating under a new ownership structure in which the government retains a 25 per cent stake, while 75 per cent management authority lies with the private sector consortium led by Arif Habib Group, which has acquired operational control.
Officials said the carrier presently operates a fleet of 18 aircraft, of which 12 are leased and six are company-owned and undergoing required maintenance work. They emphasised that the current fleet size is insufficient to support network expansion and that additional aircraft will be needed urgently to enhance service delivery.
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On service restoration, PIA confirmed that its London flights are scheduled to commence on March 29, while Paris services, which were already in process, are operating twice a week. The airline’s Manchester operations are planned at three flights per week, and flights to Malaysia continue, along with Saudi Arabia deployments focused on Hajj and Umrah traffic.
Regarding the airline’s balance sheet status, PIA clarified that its legacy assets and liabilities have been separated and transferred to PIA Holding Company, enabling the airline’s operating books to be “clean” and commercially focused. PIA management emphasised that this restructuring was crucial to attract private investment and position the airline for competitive operations.
Officials also made clear that the Roosevelt Hotel in New York and the Scribe Hotel in Paris, previously owned by PIA, were not included in the privatisation transaction. These properties remain with the government under the PIA Holding Company’s portfolio, and their future commercial strategies are being pursued separately.
PIA officials reported that operational profitability has improved, aided by balance sheet realignment and asset transfer, and they described the airline’s financial results as showing a positive trajectory since the restructuring.
Sources familiar with PIA’s financial performance said the airline posted a profit of around Rs26 billion in 2024, followed by a further profit of approximately Rs6.8 billion during the first six months of 2025, largely reflecting the impact of restructuring and balance sheet clean-up.
On fleet requirements, sources said internal assessments suggest PIA would require a minimum fleet of around 25 to 30 aircraft to operate sustainably and support planned expansion, though the timeline for achieving this target has yet to be finalised and will depend on the strategic direction set by the new owners.
Copyright Business Recorder, 2026
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