The privatization of Pakistan’s national airline, 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 Privatization Commission has announced that the privatization of PIA is expected to take place by 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 privatization process.
Any successful bidder will have to make an additional investment of Rs 30,000-40,000 crore. However, PIA’s domestic and international properties are excluded from privatization and have been transferred to PIA Holdings Company. The privatization will cover only the airline’s four main offices in Islamabad, Karachi, Peshawar and Rawalpindi.
PIA’s 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.
PIA has made a pre-tax profit of over Rs 11.5 billion in the first six months of the current financial year, operating just 14-16 aircraft on domestic and international routes. Last year, the airline made a profit of Rs 26.2 billion.
The airline continues to operate flights to destinations including Canada, the United Kingdom, France, Saudi Arabia and the United Arab Emirates, 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 services are expected to cover more than 40 cities by 2029.
Renewed government efforts for privatization of PIA
The government’s renewed effort to privatize PIA comes after a failed bid last year, when only one bid – Rs 10,000 crore ($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.
