PIA privatisation rescheduled amid renewed government push for investors
Business
PIA privatisation postponed to late December, with four qualified bidders and plans to expand fleet.
ISLAMABAD (Dunya News) – The privatisation of Pakistan’s national carrier, PIA, has been delayed once again. The process, initially scheduled for the first week of December, is now expected to begin in the last week of the month.
The Privatisation Commission confirmed that the sale is likely to take place at the end of December. Companies reportedly interested in acquiring the airline include Fauji Fertilizer, Habib Rafique, Younus Brothers, and Airblue. Four companies have reportedly qualified to participate in the process.
Successful bidders will be required to make an additional investment of Rs30 to 40 billion. However, PIA’s domestic and international assets are excluded from the sale and have been transferred to PIA Holdings Company. The privatisation will cover only the airline’s four main offices in Islamabad, Karachi, Peshawar, and Rawalpindi.
The airline’s name and branding will remain unchanged. Under the proposed plan, PIA aims to expand its fleet from 18 to 38 operational aircraft within four years.
Despite operating with only 14 to 16 aircraft, PIA earned a pre-tax profit of over Rs11.5 billion in the first six months of the current financial year. Last year, the airline reported a profit of Rs26.2 billion. PIA continues to operate flights to destinations including Canada, the UK, France, Saudi Arabia, and the UAE.
Out of PIA’s total fleet of 32 aircraft, half remain grounded due to engine and spare parts issues. If all aircraft were operational, the airline could have earned an additional Rs2–3 billion last year. Currently, PIA serves over 30 cities in Pakistan, with plans to expand services to more than 40 cities by 2029.
Renewed government push for privatisation
The government’s renewed push for PIA privatisation follows a failed attempt last year, when only one offer — Rs10 billion ($36 million) from Blue World City — was received for a 60% stake, far below the floor price of Rs85 billion ($305 million), and subsequently rejected.
In April 2025, the Privatisation Commission reopened the process, inviting expressions of interest for a 51–100% stake from both local and international investors.
