Islamabad, May 27, 2025: The government has extended the deadline for submitting Expressions of Interest (EOIs) for the privatisation of Pakistan International Airlines (PIA), according to a statement issued by the Ministry of Privatisation.
Initially set for June 3, the deadline has been extended to provide prospective investors additional time to participate in the process. The bidding phase is expected to take place between October and December this year.
This marks the government’s second major attempt to privatise the national carrier. The first effort, which failed to materialise, reportedly cost the exchequer $4.3 million, as disclosed during a meeting of the National Assembly Standing Committee on Privatisation in February.
In March, Minister for Privatisation and Investment Abdul Aleem Khan announced that the government aimed to complete all preparatory work for PIA’s privatisation by May. Subsequently, the Privatisation Commission approved a revised transaction structure that allows for the sale of 51 to 100 percent of the airline’s shares.
Despite years of financial difficulties and reliance on government bailouts, PIA recently reported its first net profit in over two decades. The airline’s 2024 financial results, approved by the board of directors, revealed an operational profit of Rs 3.9 billion and a net profit of Rs 2.26 billion, according to a company spokesperson.
Since 2011, PIA has struggled under mounting debt and operational losses, with its debt peaking at $3.3 billion by 2018. The airline remained afloat largely due to continued government subsidies.
Privatisation of state-owned enterprises, including PIA, was a key condition under the $3 billion International Monetary Fund (IMF) bailout agreement signed in June 2023. However, progress was temporarily halted in February 2024 when the Election Commission of Pakistan advised the caretaker government to delay final decisions until after the general elections.
With the privatisation process now back on track, the government hopes the extension will attract serious bidders and ensure a transparent and competitive sale.
