four companies authorized to buy 75% of the shares

ISLAMABAD:

Four companies have been pre-qualified to participate in the upcoming privatization of Pakistan International Airlines, with 75 percent of the national airline’s shares set to be auctioned soon.

The PIA name and brand will remain unchanged after privatization. Under the proposed business plan, the airline’s fleet will expand from 18 to 38 operational aircraft within four years.

According to a press release from the Prime Minister’s Office, Prime Minister Muhammad Shehbaz Sharif chaired a high-level meeting on PIA matters. He ordered that all stages of the privatization process be completed quickly and transparently.
He also directed officials to prepare a strategy to increase the number of operational aircraft in the PIA fleet and ensure timely departure of flights.

During the meeting, the officials briefed in detail about the privatization of PIA and the associated business plan. They reported that four parties have been prequalified for the upcoming auction, which will cover 75 percent of PIA shares.

It was highlighted that the name and theme of the airline will not be altered as part of the privatization process.

The business plan aims to expand PIA’s operational fleet from 18 aircraft to 38 by 2029. Currently, the national airline serves more than 30 cities across Pakistan. Under the new plan, PIA services are expected to cover more than 40 cities by 2029.

The meeting was attended by Defense Minister Khawaja Asif, Federal Minister for Law and Justice Azam Nazir Tarar, Federal Minister for Economic Affairs Ahsan Khan Cheema, Federal Minister for Finance and Revenue Muhammad Aurangzeb, Adviser to the Prime Minister on Privatization Muhammad Ali and other senior government officials.

The government’s renewed efforts for the privatization of PIA

The government’s renewed effort to privatize PIA follows a failed bid last year when only one bid – 10 billion rupees ($36 million) from property developer Blue World City – was received for a 60 per cent stake. The offer, well below the government’s minimum price of 85 billion rupees ($305 million), was rejected.

The Privatization Commission reopened the process in April 2025, inviting local and international investors to express interest for a 51 to 100 percent stake.

The revamped process attracted interest from eight entities, four of which – including leading business groups and a private education operator – were shortlisted after federal approval in July. The final tender and negotiations are expected to be completed before the end of the year.

The sale of PIA is expected to mark Pakistan’s first major privatization in nearly two decades. The revival of loss-making state companies such as PIA remains a key structural reference point within the framework of the International Monetary Fund’s current $7 billion bailout program.