The privatization of Pakistan’s national carrier, PIA, has been postponed yet again. The process is now expected to begin in the last week of December instead of the first week as previously planned.
The Privatization Commission has announced that the privatization of PIA is now expected to take place by the end of December. PIA sources have indicated that companies reportedly interested in acquiring PIA include Fauji Fertilizer, Habib Rafique, Younus Brothers and Airblue.
According to PIA sources, four companies have been qualified to participate in the privatization process.
Any successful bidder will have to make an additional investment of Rs 30-40 billion. However, PIA’s domestic and international properties have been excluded from the privatization and have been transferred to PIA Holdings Company. The privatization will only cover the airline’s four head offices in Islamabad, Karachi, Peshawar and Rawalpindi.
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.
PIA has earned a pre-tax profit of over DKK 11.5 billion. Rs. in the first six months of the current financial year, operating with only 14 to 16 aircraft on domestic and international routes. Last year, the airline earned DKK 26.2 billion. Rs. in profit.
The airline continues to fly to destinations including Canada, the UK, France, Saudi Arabia and the UAE, despite a reduced fleet.
PIA owns a total of 32 aircraft, but half are currently grounded due to engine and spare parts problems. If these planes were operational, the airline could be expected to earn two to three billion rupees more than last year.
Currently, the national airline 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 government’s renewed efforts for PIA privatization
The government’s renewed push to privatize PIA comes after a failed bid last year in which only one offer — Rs10b ($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 Rs85b ($305m), 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.
