Transparent bidding for PIA sell-off: NA body acknowledges Ministry’s role
ISLAMABAD: The National Assembly’s Standing Committee on Defence on Tuesday acknowledged the Ministry of Defence’s role in ensuring a transparent bidding process for the privatization of Pakistan International Airlines (PIA) and welcomed assurances by the new owners regarding employee welfare and improved flight operations.
The committee was chaired by Fateh Ullah Khan Miankhel, where members were briefed that the Arif Habib Consortium had successfully won the bid for a 75 percent stake in Pakistan International Airlines for Rs135 billion. The committee appreciated both the transparent conduct of the bidding process and the consortium’s stated commitment to safeguard employees while enhancing flight operations in the near future.
While reviewing the implementation status of its earlier recommendations on private airlines and key operational issues in the aviation sector, the committee expressed concern over flight cancellations, delays, fare structures, and fleet resilience. Members particularly highlighted the issue of high domestic airfares and their impact on passengers, stressing the need for stronger regulatory oversight by the Civil Aviation Authority and airline operators to ensure service quality, consumer protection, and continuity of domestic operations alongside international expansion.
The committee also discussed public grievances and underscored the importance of improved monitoring mechanisms across the aviation sector. Financial challenges faced by airlines, including PIA, were examined with a special focus on the prevailing taxation regime. Members noted that while ticket prices had not risen significantly in dollar terms, the imposition of various taxes, including sales tax, had placed a considerable burden on airlines.
It was agreed that a comprehensive study on the taxation framework and its impact on the aviation sector would be prepared and submitted to the Minister for Defence and subsequently to the Prime Minister. The chairman was tasked with arranging a meeting with the Finance Minister and relevant authorities to explore the possibility of rationalizing taxes, with outcomes to be shared with the committee.
Broader sectoral issues were also taken up, including the availability of medical facilities at aviation installations, radiation-related concerns, and shortages of trained and skilled personnel. The committee decided to conduct visits to relevant ground facilities as part of its oversight role to assess conditions firsthand and recommend corrective measures.
In addition, members deliberated on the treatment of liabilities arising from PIA’s privatization and the proposed use of proceeds for debt servicing and social sector development. The committee reviewed project implementation challenges, emphasizing the need to prioritize ECNEC-approved projects in the defence and aviation sectors. The Ministries of Planning and Defence were directed to review ongoing projects, including strategic airports and the National Aviation Security Academy, provide updates on fund utilization, and ensure the timely release of required funds.
The committee also decided to take up pending subcommittee reports in its next meeting and to follow up with the Prime Minister’s Office and the Ministry of Finance regarding the relaxation of recruitment rules for the armed forces and police, with outcomes to be shared with the relevant ministries.
Copyright Business Recorder, 2025