PIA Deal Focused on Revival, Capital Injection, Says Privatisation Adviser

ISLAMABAD: Rejecting criticism over the privatisation of Pakistan International Airlines (PIA), Prime Minister’s Adviser on Privatisation Muhammad Ali on Tuesday said the move does not undermine national pride but is aimed at restoring the airline’s lost strength, efficiency, and financial stability.

Addressing a joint press conference with Federal Information Minister Atta Tarar, Ali dismissed social media claims suggesting that PIA was sold for less than the value of its aircraft, terming them misleading and factually incorrect.

He said such assertions distort the realities of the privatisation process.

Ali noted that PIA once operated a fleet of around 50 aircraft, whereas only 17 to 19 planes are currently operational, with an additional 12 aircraft on lease.

He said the airline presently serves nearly four million passengers annually, adding that its most valuable assets are its landing slots and route rights.

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The adviser said PIA was once a reputable and profitable airline, expressing confidence that privatisation would help gradually restore its operational strength and international standing.

Responding to claims that the government would receive only Rs10 billion from the transaction, Ali clarified that the government would get 7.5% in cash and 25% in equity value, amounting to Rs10 billion and Rs45 billion respectively.

In total, the government would receive Rs55 billion from the bidding proceeds, while Rs125 billion would be reinvested into PIA.

“PIA privatisation has been completed, and the entire nation witnessed a transparent process,” he said.

Highlighting the airline’s financial decline, Ali said PIA’s performance deteriorated sharply after 2009, with cumulative losses of around Rs500 billion over the past decade.

The remarks came a day after a consortium led by Arif Habib Corporation emerged as the top bidder for a 75% stake in the national carrier, offering Rs135 billion — a development described by authorities as a landmark step.

Separately, speaking to Reuters, Ali said the government expects the new owner to begin running the airline by April, subject to regulatory approvals.

He said the process now moves to final approvals by the Privatisation Commission board and the federal cabinet, expected within days. Contract signing is likely within two weeks, followed by a 90-day period to complete legal and regulatory requirements.

Ali said the deal was structured to inject fresh capital into PIA rather than merely transferring ownership. “We did not want a situation where the government sells the airline, takes the money, and the company still collapses,” he added.