The privatisation of Pakistan International Airlines has been delayed once again, with the process now expected to begin in the final week of December rather than the first week, as earlier planned. According to the Privatisation Commission, the revised timeline has been set following procedural adjustments and ongoing consultations with potential bidders.
Sources within PIA confirmed that four companies have qualified to participate in the bidding process. Firms reportedly showing interest include Fauji Fertilizer, Habib Rafique, Younus Brothers, and private airline Airblue. Any company securing a majority stake will be required to inject an additional investment of Rs30 to 40 billion to help stabilise and expand the airline’s operations.
As part of the restructuring, PIA’s domestic and international properties have been transferred to the PIA Holdings Company and are not part of the privatisation package. The transaction will cover only the airline’s four main administrative offices located in Islamabad, Karachi, Peshawar and Rawalpindi. Officials have also clarified that PIA’s name and branding will remain unchanged under the new ownership structure.
Under the proposed post-privatisation business plan, the airline’s fleet is projected to expand from 18 to 38 operational aircraft within four years. Although PIA currently owns 32 planes, nearly half of them remain grounded due to shortages of spare parts and engine maintenance challenges. Officials believe that if these aircraft were operational, the airline could generate an additional two to three billion rupees annually.
Despite the reduced fleet, PIA continues to operate flights to major international destinations including Canada, the United Kingdom, France, Saudi Arabia and the United Arab Emirates. On domestic routes, the airline currently serves over 30 cities, with plans to expand coverage to more than 40 cities by 2029.
Financially, PIA has shown signs of improvement. The airline recorded a pre-tax profit of over Rs11.5 billion in the first six months of the current financial year, operating with only 14 to 16 aircraft. Last year, it posted a profit of Rs26.2 billion, reflecting better route management and demand recovery.
The government’s renewed push for privatisation follows a failed attempt last year, when the only offer received — Rs10 billion from real estate developer Blue World City for a 60 percent stake — fell far short of the government’s floor price of Rs85 billion and was rejected. The process was restarted in April 2025, with the Privatisation Commission inviting expressions of interest from local and international investors for a 51 to 100 percent stake.
The government hopes the revamped structure, clearer financial terms and improved investor interest will help successfully conclude PIA’s long-awaited restructuring and transition into private management.
