ISLAMABAD: In a major decision, the federal government of Pakistan has approved the privatization of Pakistan International Airlines (PIA), paving the way for the sale of 51% to 100% of the airline's shares. The Cabinet Committee on Privatization, chaired by Deputy Prime Minister Ishaq Dar, approved the sale during a meeting in Islamabad on Tuesday.
Ishaq Dar emphasized that the privatization of PIA would help alleviate the financial strain on the national treasury. The government believes that by privatizing the airline, it will be able to unlock PIA's full potential and bring it to a level of efficiency and profitability that has long been out of reach under state ownership. Dar also mentioned that, in addition to selling the shares, administrative control of PIA would be handed over to the new owners, marking a significant shift in the management and operations of the airline.
The privatization decision is a part of the government's broader strategy to reduce fiscal deficits and improve state-owned enterprises' performance. Ishaq Dar assured that the move had been taken in the national interest to ensure the airline’s long-term sustainability and growth. “This will allow PIA to operate as a competitive entity in the aviation sector, benefiting both the economy and the public,” Dar added.
This latest step follows the approval of the transaction structure by the Privatization Commission Board on March 19. Chaired by Muhammad Ali, the advisor to the Prime Minister on Privatization, the board had given the go-ahead for a second attempt to privatize PIA. The plan involves selling a majority stake, ranging from 51% to 100%, along with management control. The Ministry of Privatization confirmed that the transaction structure, including divestment of PIA’s shares, had been recommended to the Competition Commission of Pakistan (CCOP) for further review and approval.
Sources have indicated that several private-sector entities have shown interest in acquiring a stake in PIA, including the Arif Habib Group, Taba Group, and YB Holdings. Key meetings between representatives of these groups have reportedly taken place in Islamabad to discuss the potential acquisition of the airline. These companies are expected to play a crucial role in the process, possibly contributing to PIA's revival and streamlining of operations.
PIA has long struggled with financial instability, inefficiency, and mounting losses. The airline’s privatization is seen as a crucial step toward its revitalization. It will also mark a significant shift in Pakistan's privatization policy, which has seen mixed results in the past.
While the sale of PIA's majority or full ownership is expected to attract potential buyers, it is clear that the future of the airline will depend heavily on the vision and resources of its new owners. The government has reiterated that the privatization will be conducted transparently, ensuring that the process is fair and in line with international standards.
As Pakistan prepares for the next phase in PIA’s history, the hope is that the airline will emerge as a profitable, competitive player in the global aviation industry, once again serving the needs of the people and boosting the national economy.
