Islamabad, December 24, 2025: 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 intended to restore the national flag carrier’s lost strength, efficiency, and reputation.
Addressing a joint press conference with Federal Minister for Information Attaullah Tarar, Muhammad Ali dismissed claims circulating on social media that PIA was sold for less than the value of its aircraft, calling such assertions incorrect and misleading. He said these narratives fail to reflect the facts and structure of the privatisation process.
Providing an overview of the airline’s current condition, the adviser said PIA once operated a fleet of around 50 aircraft, but currently only 17 to 19 planes are operational, while another 12 aircraft are on lease. Despite its challenges, he said, PIA facilitates travel for nearly four million passengers annually, with its landing slots and international route rights being among its most valuable assets.
The remarks came a day after a consortium led by Arif Habib Corporation emerged as the highest bidder for a 75 percent stake in the national carrier, offering Rs135 billion in what the government described as a landmark privatisation deal. Muhammad Ali said PIA was once a strong and reputable airline and expressed confidence that privatisation would help gradually restore its operational strength and global standing.
Addressing concerns about government returns from the deal, the adviser clarified that the state would receive 7.5 percent in cash and 25 percent in equity value, amounting to Rs10 billion and Rs45 billion respectively. “The government will receive a total of Rs55 billion from the bidding proceeds, while Rs125 billion will be reinvested into PIA,” he said, adding that the entire privatisation process was conducted transparently.
Highlighting the airline’s financial decline, Muhammad Ali said PIA’s performance deteriorated significantly after 2009 and that the national carrier had incurred losses of around Rs500 billion over the past decade.
Separately, in an online interview with Reuters, the adviser said the government expects a new owner to begin running the airline by April next year, subject to regulatory approvals. He said the process will now move to final approvals by the Privatisation Commission Board and the federal cabinet, expected within days, with contract signing likely within two weeks and financial close after a 90-day period to meet legal and regulatory requirements.
“The deal has been structured to inject fresh capital into the airline rather than merely transfer ownership,” he said. “We did not want a situation where the government sells the airline, takes the money, and the company still collapses.”
PIA auction details
The auction marked Pakistan’s first major privatisation in nearly two decades and comes amid pressure to reform loss-making state-owned enterprises under a $7 billion International Monetary Fund (IMF) programme.
Consortia led by Arif Habib Corporation and Lucky Cement advanced to the open auction stage after submitting bids above the reference price of Rs100 billion. Private airline Airblue exited the process after submitting an offer of Rs26.5 billion.
During the open auction, the Lucky Cement–led consortium raised its bid from Rs101.5 billion to Rs115.5 billion. Arif Habib subsequently increased its offer to Rs121 billion, while Lucky Cement closed the round at Rs120.25 billion. After a brief recess, Lucky Cement raised its bid to Rs134 billion, which was immediately surpassed by Arif Habib’s final offer of Rs135 billion, securing the top position.
