Struggling PIA: Govt says 75% shares to be privatised

ISLAMABAD: In a high-stakes move that could either salvage or seal the fate of the country’s ailing national airline, Prime Minister Shehbaz Sharif was informed on Thursday of the imminent privatisation of Pakistan International Airlines (PIA), with an astonishing 75 percent of the flag carrier’s shares set to be sold off to private buyers.

During a high-level meeting chaired by the Prime Minister, officials presented a detailed plan for PIA’s privatisation, outlining the next steps in the process and progress made thus far. One of the key stipulations revealed was that, despite the sale, PIA’s name and branding will remain unchanged.

A statement from the Prime Minister’s Office confirmed that the privatisation process is poised to enter its critical bidding phase, where the future ownership of the beleaguered airline will be determined. Officials disclosed that four parties have already been pre-qualified to participate in the bidding.

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They also outlined a transformative business plan for PIA, which includes a significant expansion of its fleet. The number of airworthy aircraft is set to grow from 18 to 38 by 2029.

The airline’s route network, currently serving over 30 cities, will also be extended to more than 40 cities by the same year.

Prime Minister Sharif, in his remarks during the meeting, stressed the urgency of completing the privatisation swiftly and transparently.

“This is a crucial step in ensuring the long-term sustainability of PIA,” he said. “We must ensure that the privatisation process is conducted without delay, and that PIA’s operational capabilities are significantly improved.”

He also directed officials to focus on increasing the number of airworthy aircraft and ensuring the timely departure of flights, issues that have long plagued the airline.

In addition to privatisation, the prime minister emphasised the need for operational reforms, particularly in improving flight punctuality and fleet readiness.

He underscored that addressing these challenges alongside privatisation would help PIA restore its reputation.

The meeting also provided an update on the business plan, which aims to modernise PIA’s fleet and enhance its service offering.

With an expanded fleet and extended route network, PIA aims to position itself as a stronger competitor in the regional aviation market.

The meeting was attended by key ministers, including Defence Minister Khawaja Asif, Federal Minister for Law and Justice Azam Nazeer Tarar, Minister for Economic Affairs Ahad Cheema, Minister for Finance and Revenue Muhammad Aurangzeb, and the Prime Minister’s Advisor on Privatisation Muhammad Ali, among other senior officials.

Copyright Business Recorder, 2025