The federal government has strongly pushed back against criticism surrounding the privatisation of Pakistan International Airlines (PIA), insisting that the move is about revival — not selling off national pride.
Addressing a joint press conference on Tuesday, Prime Minister’s Adviser on Privatisation Muhammad Ali, alongside Information Minister Atta Tarar, rejected social media claims suggesting that PIA was sold for less than the value of its aircraft. He termed such assertions “misleading” and said they deliberately ignore the realities of the airline’s condition and the PIA privatisation process transparency witnessed by the nation.
Muhammad Ali explained that PIA, once a regional aviation leader, has suffered years of decline. While the airline previously operated around 50 aircraft, only 17 to 19 planes are currently operational, with another 12 on lease. Despite these challenges, PIA still serves nearly four million passengers annually, with its international landing and route rights remaining its most valuable assets.
The clarification comes a day after a consortium led by Arif Habib Corporation emerged as the highest bidder for a 75% stake in the national carrier, offering Rs135 billion — a development officials have described as a historic step after nearly two decades without major privatisation.
Read More: Arif Habib consortium wins PIA privatisation with record Rs135 billion bid
Addressing confusion over the financial structure of the deal, Muhammad Ali said the government would not receive “just Rs10 billion,” as claimed online. Instead, he clarified that the state would receive 7.5% in cash worth Rs10 billion and 25% equity valued at Rs45 billion — totaling Rs55 billion. In addition, Rs125 billion will be reinvested directly into PIA to stabilise and strengthen its operations.
“This is not about selling and walking away,” he said. “The deal is designed to inject fresh capital so the airline does not collapse after privatisation. The PIA privatisation process transparency ensured that every step was open and competitive.”
Highlighting the airline’s financial troubles, the adviser revealed that PIA has accumulated losses of nearly Rs500 billion over the past decade, with performance deteriorating sharply after 2009.
Separately, speaking to Reuters, Muhammad Ali said the government expects the new owners to begin running the airline by April, subject to regulatory approvals. The process now moves to final clearance by the Privatisation Commission Board and the federal cabinet, likely within days. Contract signing is expected within two weeks, followed by a 90-day period for regulatory and legal completion.
The auction itself was highly competitive. Both Arif Habib and Lucky Cement-led consortia crossed the reference price of Rs100 billion to reach the final round. Lucky Cement raised its bid from Rs101.5 billion to Rs134 billion after a brief recess, but Arif Habib countered immediately with Rs135 billion to seal the deal. Private airline Airblue exited earlier after submitting a bid of Rs26.5 billion.
The PIA auction marks Pakistan’s first major privatisation in almost 20 years and comes amid pressure to reform loss-making state-owned enterprises under a $7 billion IMF programme.
