‘Significant progress made in turnaround’: PIA sell-off deal likely to be sealed next month, NA told
ISLAMABAD: Federal Parliamentary Secretary for Defence Zeb Jaffar announced on Monday that Pakistan International Airlines (PIA) has made significant progress in its turnaround, with the government expecting to finalize the airline’s privatization deal by October.
Speaking during the Question Hour in the National Assembly, she said that the second attempt to privatize PIA is being carried out by the Privatization Commission (PC). She said that privatization has prequalified four bidders who are conducting site visits and due diligence. She said that the PIA management is working tirelessly for the revival of the airline in a phased manner. She said that all the steps have been taken by the management to ensure discipline, performance, improve governance of the organization, focus on aggressive sales and marketing, closure of loss-making routes, and expansion of productive routes. She said that agreements involving financial cost have been reviewed in line with the best industry practices.
She said that no negative impact is confirmed, but PIA is expanding operations to the Middle East (United Arab Emirates, Saudi Arabia) and new destinations, including Kuala Lumpur, Baku, and Istanbul.
In a written reply to a question of the house, PIA has been restructured by the government. Pakistan International Airlines Corporation Limited (PIACL) was incorporated on 21 March 2024. Currently, PIA has the status of a subsidiary of PIAHCL. All non-core liabilities amounting to Rs628 billion and non-core assets amounting to Rs24.868 billion have been carved out in PIAHCL. The restructuring was done to clean the balance sheet of PIA so that it can earn better value during the privatization process. Consequently, PIA has earned an operating profit of Rs9.3 billion, and a net profit of Rs26 billion was recorded during the year 2024.
Zeb Jaffar said PIA has been transformed from a loss-making entity into a profitable company through strategic initiatives, debt restructuring, and route restoration, positioning it for a successful sale.
The Parliamentary Secretary acknowledged the historic damage sustained by the airline due to the statement of the former aviation minister and stressed the importance of the 2020 inquiry committee established by the Cabinet Committee to assess PIA’s losses. While the committee’s report remains pending, the government is committed to timely follow-up actions.
She said that the government has taken significant initiatives, including restructuring the airline’s liabilities, implementing downsizing measures, and reopening international routes that had been suspended for a long time. She said that, as a result, PIA is now moving towards profitability. She expressed confidence that when the bidding process begins, PIA will be sold as a profitable entity.
Zeb Jaffar emphasized the revival of international routes and fleet modernization, with new aircraft like Boeing 777 and A320s being inducted to enhance operational efficiency. She said that currently, PIA operates 19 aircraft, including two Average True Ranges (ATRs), serving both domestic and international passengers profitably despite fleet constraints.
Responding to a question, Zeb Jaffar further said over 5,000 ladies are serving in the Pakistan Army, and around 700 more have been commissioned during the last three years.
She said that over 700 women have been commissioned across various branches of the Pakistan Army, including the medical corps, supply, administration, signals, IT, and education. These women have played a commendable role in the armed forces, working alongside their male counterparts.
In a written reply to a question, Minister for Interior and Narcotics Control Senator Syed Mohsin Raza Naqvi informed the house that a total of 3,811 beggars were arrested during the last year, including male, female, and transgender individuals in Islamabad Capital Territory (ICT).
He said that the ICT Police initiated an anti-begging campaign targeting professional beggars and their handlers. He said that special teams have been formed to monitor and take action against begging activities at traffic signals, marketplaces, and other public areas. He said that the campaign also emphasized the rehabilitation of individuals involved in begging, including the provision of shelters, security, and coordination with welfare organizations to support those in need.
Copyright Business Recorder, 2025