The privatisation of Pakistan’s national carrier, PIA, has been delayed yet again. Instead of beginning in the first week of December, the process is now expected to start in the last week of the month, according to the Privatisation Commission.
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PIA sources confirm that four companies have qualified to participate in the bidding process. Among the firms reportedly showing interest are Fauji Fertilizer, Habib Rafique, Younus Brothers, and Airblue.
Any successful bidder will be required to inject an additional Rs30–40 billion into the airline. However, PIA’s domestic and international properties have been excluded from the transaction and shifted to the PIA Holdings Company. The privatisation will only cover the airline’s four major offices in Islamabad, Karachi, Peshawar, and Rawalpindi.
PIA’s name, branding, and identity will remain unchanged after privatisation. Under the proposed business plan, the airline aims to expand its fleet from 18 to 38 operational aircraft within four years.
Despite operating with just 14 to 16 aircraft, PIA earned a pre-tax profit of over Rs11.5 billion during the first six months of the current financial year. Last year, the airline reported a profit of Rs26.2 billion. The carrier continues flights to destinations such as Canada, the United Kingdom, France, Saudi Arabia, and the UAE, even with its reduced fleet.
PIA owns 32 aircraft in total, but nearly half remain grounded due to engine and spare-parts shortages. Officials say that if these planes were operational, the airline could have earned an additional Rs2–3 billion compared to last year.
Currently, PIA serves more than 30 cities across Pakistan. Under the new expansion plan, the number of destinations is expected to grow to over 40 cities by 2029.
Government renews drive to privatise PIA:
The government’s fresh push to privatise PIA follows a failed attempt last year, when only one bid—Rs10 billion ($36 million) from real estate developer Blue World City—was received for a 60% stake. The offer was rejected as it was far below the government’s Rs85 billion ($305 million) floor price.
In April 2025, the Privatisation Commission relaunched the process, inviting expressions of interest for a 51% to 100% stake from both domestic and global investors.
