PIA Privatization Set for Completion by December, Senate Committee Told

The privatization of Pakistan International Airlines (PIA) has entered its final phase, with pre-qualified bidders, Fauji Fertilizer, Arif Habib, Airblue, and Lucky Cement, nearing completion of their due diligence. The Privatization Commission has set November 17, 202,5, as the date for bidding, aiming to complete the process by December 2025. Officials told the Senate Standing Committee on Privatization, chaired by Senator Dr. Afnanullah Khan, that the new investor will be required to hire additional staff for PIA. The government plans to sell between 51% and 100% of the airline’s shares, with the International Monetary Fund (IMF) easing conditions to facilitate the process. PIA’s routes to Europe and the UK have reopened, and a technical review of the fleet is underway. Gulf airlines have not participated in the bidding, reportedly preferring PIA to remain weak to avoid competition. The government is optimistic about a successful privatization this time, citing serious bidders who have already invested significantly in the due diligence process. PIA currently owns five properties in Pakistan and seven abroad, and the company faces liabilities totaling Rs. 150 billion. In parallel, the government is advancing plans to outsource Islamabad, Lahore, and Karachi airports. Talks are ongoing with the UAE for the outsourcing of Islamabad Airport, after a Turkish company’s bid fell short. The UAE has expressed willingness to invest and is ready to offer a 56% revenue share. The aim is to bring international standards to airport facilities. The committee was also briefed on the privatization of PIA’s Roosevelt Hotel in New York. The appointment of a new financial advisor is in its final stages, with several multinational companies and investment banks expressing interest. There is a proposal to demolish the current building and construct a new structure through a joint venture, with the government retaining the right to exit the venture at any time. Additionally, the PIA Holding Company’s business complex has been transferred to the Pakistan Air Force, a move approved by the federal cabinet and board. The complex, located on 200 acres in Karachi, will continue to produce defense-related items. Employees’ dues totaling Rs. 4 billion will be paid, with Pakistan Engineering Complex contributing Rs. 2.5 billion. Officials also updated the committee on the successful privatization of First Women Bank and ongoing efforts to finalize the terms of PIA’s privatization agreement. The government remains hopeful that this round of privatization will attract strong bids and mark a turning point for the national carrier.