ISLAMABAD: The government is likely to fetch around PKR 45 billion through the sale of PIA’s remaining 25 percent shares, which would increase the total sales proceeds of PIA to approximately PKR 55 billion.
Secretary Privatisation Commission Usman Akhtar Bajwa stated this during a meeting of the Senate Standing Committee on Privatisation, held under the chairmanship of Senator Dr Afnanullah Khan.
He said that the financial close of the privatisation transaction is expected to be completed by the end of April.
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He said that the consortium headed by Arif Habib is looking for a new management and CEO, while after the approval of the cabinet committee Fauji Fertilizer Company will also be included in the consortium.
He said the Arif Habib consortium could purchase the remaining shares by 29th April this year. He dispelled the impression that PIA was sold below market value.
He said before privatisation, the net asset value of PIA was mere PKR 9 billion, but through revaluation of its assets, the government raised its net asset value. He said the total liabilities on PIA were PKR 125 billion, now transferred to the new management.
The committee was informed that the consortium has established a new company called PIA Equity Limited, which will include all the shareholders, and there are no major obstacles left in the privatisation process. For this purpose, two working groups have also been formed, which are submitting reports to the central steering committee.
While giving a briefing on the properties of PIA Holding Company in the meeting, it was informed that the total value of the company’s various properties is about Rs 12 billion, while the outstanding balances of about Rs 180 billion have also been transferred to the holding company.
The value of a plot located in the New Blue Area of Islamabad was said to be about Rs 3 billion. PIA officials told the committee that during the year 2024, the company earned a profit of PKR 7.3 billion, while a profit report of PKR 26 billion has been submitted to the Securities and Exchange Commission of Pakistan.
The meeting also discussed the medical facilities provided to retired employees and pensioners of PIA. According to officials, PIA has about 16,500 pensioners, out of which 12,500 are active.
The proposals of the State Life Insurance Corporation of Pakistan for medical insurance have been approved as good, and arrangements are being made with various hospitals in the country.
Committee Chairman Senator Afnanullah Khan, taking notice of the complaints of retired employees, directed that immediate steps be taken to provide them with better medical facilities.
During the meeting, the committee members also raised questions regarding PIA properties, various aspects of privatisation, and the GST concession given on the purchase of new aircraft.
The chairman of the committee emphasised the importance of Gwadar International Airport and said that due to its proximity to the Middle East and Central Asia, this airport can be used effectively for regional traffic.
The committee meeting was attended by Senator Anwarul Haq Kakar, Senator Bilal Ahmed Khan, and Senator Palwasha Mohammad Zai Khan, along with former Member of National Assembly Chaudhry Manzoor Ahmed, who was specially participating in the committee, as well as the Secretary Privatization Commission, Secretary Privatization Division, and senior officials of relevant institutions.
Copyright Business Recorder, 2026
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