four companies approved to buy 75% of the shares

ISLAMABAD:

Four companies have been pre-qualified to participate in the upcoming privatization of Pakistan International Airlines, with 75 percent of the national carrier’s shares due to be auctioned soon.

PIA’s name and branding will remain unchanged after the privatisation. Under the proposed business plan, the airline’s fleet will be expanded from 18 to 38 operational aircraft within four years.

According to the Prime Minister’s press release, Prime Minister Muhammad Shehbaz Sharif chaired a high-level meeting on PIA matters. He directed that all phases of the privatization process be completed quickly and transparently.
He also directed officials to prepare a strategy to increase the number of operational aircraft in PIA’s fleet and ensure timely departure of flights.

During the meeting, the officials gave a detailed briefing on PIA’s privatization and the associated business plan. They stated that four parties have been prequalified for the upcoming auction, which will cover 75 percent of PIA’s shares.

It was emphasized that the airline’s name and theme will not be changed as part of the privatization process.

The business plan aims to expand PIA’s operational fleet from 18 aircraft to 38 by 2029. Currently, the national carrier provides services to more than 30 cities in Pakistan. As per the new plan, PIA’s services are expected to cover over 40 cities by 2029.

The meeting was attended by Defense Minister Khawaja Asif, Federal Minister for Law and Justice Azam Nazir Tarar, Federal Minister for Economic Affairs Ahsan Khan Cheema, Federal Minister for Finance and Revenue Muhammad Aurangzeb, Prime Minister’s Adviser on Privatization Muhammad Ali and other senior officials.

The government’s renewed efforts for PIA privatization

The government’s renewed push to privatize PIA follows a failed bid last year in which only one offer — Rs10 billion ($36 million) from property developer Blue World City — was received for a 60 percent stake. The offer, well below the government’s floor price of Rs85 billion ($305 million), was rejected.

The Privatization Commission reopened the process in April 2025, inviting expressions of interest for a 51 to 100 percent stake from both local and international investors.

The revamped process attracted interest from eight entities, four of which — including leading business groups and a private education operator — were shortlisted following federal approval in July. Final tender and negotiations are expected before the end of this year.

The sale of PIA is expected to mark Pakistan’s first major privatization in nearly two decades. Reviving loss-making state-owned enterprises like PIA remains a key structural benchmark under the country’s ongoing $7 billion bailout program from the International Monetary Fund.