The privatisation of Pakistan’s national carrier, PIA, has been postponed once again. The process is now expected to begin in the last week of December, instead of the first week as previously planned.
The Privatisation Commission has announced that the privatization of PIA is now expected to take place at the end of December. PIA sources have indicated that companies reportedly interested in acquiring PIA include Fauji Fertilizer, Habib Rafique, Younus Brothers, and Airblue.
According to PIA sources, four companies have been qualified to participate in the privatisation process.
Any successful bidder will be required to make an additional investment of Rs30 to 40 billion. However, PIA’s domestic and international properties are excluded from the privatisation and have been transferred to the PIA Holdings Company. The privatisation will cover only the airline’s four main offices in Islamabad, Karachi, Peshawar and Rawalpindi.
PIA’s name and branding will remain unchanged after privatisation. Under the proposed business plan, the airline’s fleet will be expanded from 18 to 38 operational aircraft within four years.
PIA has earned a pre-tax profit of over Rs11.5b in the first six months of the current financial year, operating with only 14 to 16 aircraft on domestic and international routes. Last year, the airline earned Rs26.2b in profit.
The airline continues to operate flights to destinations including Canada, the United Kingdom, France, Saudi Arabia, and the UAE, despite a reduced fleet.
PIA owns a total of 32 aircraft, but half are currently grounded due to engine and spare parts issues. If these planes were operational, the airline could be expected to earn two to three billion rupees more than last year.
Currently, the national airline provides services to more than 30 cities across Pakistan. Under the new plan, PIA’s services are expected to cover over 40 cities by 2029.
Govt’s renewed efforts for PIA privatisation
The government’s renewed effort to privatise PIA comes after a failed bid last year, when only one offer — Rs10b($36 million) from real estate developer Blue World City — was received for a 60 per cent stake. The offer, far below the government’s floor price of Rs85b ($305m), was rejected.
The Privatisation Commission reopened the process in April 2025, inviting expressions of interest for a 51 to 100 per cent stake from both local and international investors.
