Islamabad, Mar 7, 2025: Minister for Privatization, Abdul Aleem Khan, has announced that the privatization process of Pakistan International Airlines (PIA) will be completed within the next three months.
The government has decided to make necessary changes in accordance with the preferences of interested buyers.
According to a press release issued by the Ministry of Privatization, Aleem Khan stated that the privatization process is progressing swiftly, and the government is ensuring that all steps are completed with transparency and merit.
The government has already consulted with various local and international investors regarding PIA’s privatization.
Experts believe that this move will not only improve the financial condition of the national airline but will also have a positive impact on Pakistan’s economy.
Khan noted that resuming PIA flights to Europe has significantly increased investor interest in the airline’s privatization. He expressed optimism that this time, the process would attract more serious bidders.
“With recent reforms, the national carrier is on track to regain profitability,” the statement added.
During the last privatization attempt in October 2024, Blue World City, a real estate firm, was the only entity to submit a bid—an offer of $36 million for a 60% share.
Despite six pre-qualified entities, the bid fell significantly short of the government’s Rs85 billion benchmark.
Prospective investors have voiced concerns about policy stability, government commitment to agreements, inconsistent communication, unfavorable terms, high taxation on the aviation sector, and PIA’s historical challenges.
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PIA’s accumulated losses are estimated at nearly $3 billion, while the airline’s total asset valuation is approximately $572 million.
Additionally, Khan disclosed that PIA will resume flights to the UK within three months, further enhancing its market position.
Last year, the airline restarted operations in Europe after the European Union Aviation Safety Agency (EASA) lifted its 2020 ban.
Authorities originally imposed the restriction due to concerns over pilot licensing standards and Pakistan’s Civil Aviation Authority’s (PCAA) failure to comply with global safety regulations.
