ISLAMABAD: Pakistan has completed the privatisation of its national carrier, Pakistan International Airlines (PIA), in a move aimed at improving operational efficiency and attracting new investment, Advisor to the Prime Minister Shehbaz Sharif said Wednesday.
At a press briefing, Privatisation Commission Advisor Muhammad Ali said the process prioritised transparency, national interest, and the airline’s long-term sustainability. He was accompanied by Information Minister Atta Tarar at the press conference.
“The challenge was to secure a fair price while ensuring the buyer invests in the airline,” Muhammad Ali said. “Both objectives have been achieved through careful structuring.”
Under the deal, the government will receive Rs 55 billion in direct proceeds. The airline’s assets are valued at Rs 45 billion, while an additional Rs 125 billion will be invested to modernise operations, giving PIA a total valuation of Rs 180 billion.
Officials emphasized that the majority of PIA’s fleet consists of leased or aging aircraft, with only six of 18 operational planes owned by the airline. Most aircraft predate 2010, averaging 25 years old, underscoring the need for investment.
PIA currently serves 30 domestic and international destinations, holding flight rights in 78 countries and air service agreements with 97 nations. The airline handles roughly four million passengers annually, with a 30% domestic market share, down from 60–70% on key routes in previous decades.
Social media claims that PIA was sold at a fraction of its value were dismissed by officials. “The transaction reflects fair market value,” Muhammad Ali said, noting that modernisation funding will strengthen operations.
Founded in 1943 and formally established in 1955, PIA has faced decades of financial challenges, including negative equity of PKR 213 billion by 2015. The privatisation marks the latest attempt to revive the airline after multiple failed restructuring efforts.
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Government officials expressed confidence that the transaction will stabilize PIA, attract investment, and improve service quality, while maintaining accountability and transparency.
