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Aftab Maken
ISLAMABAD: Pakistan International Airlines (PIA) has decided to carry out a fresh valuation of five of its major properties across the country and has invited applications from government-registered firms to undertake the assessment, in what appears to be part of broader efforts to improve transparency and manage its strained financial position.
According to officials, the properties identified for revaluation include PIA’s sales office in Blue Area, Islamabad, the booking office in Rawalpindi, a plot allocated for the airline’s headquarters, as well as sales offices located in Peshawar and Quetta. The move aims to determine the current market value of these assets, which could play a key role in future financial, restructuring, or divestment decisions by the national carrier.
PIA management has formally sought expressions of interest from government-registered valuation firms and has set February 13 as the deadline for the submission of applications. Officials said the valuation exercise is intended to provide an updated and realistic assessment of the airline’s real estate portfolio, reflecting prevailing market conditions.
The decision comes at a time when PIA continues to face serious financial challenges, including mounting payables to key suppliers. One of the most pressing issues involves outstanding receivables owed to Pakistan State Oil (PSO), which have reportedly reached around Rs30 billion. The unpaid dues have placed significant financial pressure on the state-run oil company, which supplies fuel to the national airline.
Sources familiar with the matter said PSO had been expecting to recover a portion of its outstanding receivables through the transfer of PIA-owned real estate in Islamabad. However, despite progress on the privatisation of the airline, the proposed property transfer has yet to be completed. The delay has prolonged PSO’s exposure to the unpaid amount, adding to concerns within the energy sector about liquidity and cash flow management.
Industry observers believe the revaluation of PIA’s properties could be linked to ongoing discussions around asset monetisation, debt settlement, and the airline’s long-term restructuring strategy. Accurate valuations are considered essential for any potential sale, lease, or transfer of assets, particularly in the context of negotiations with creditors and strategic partners.
PIA has long struggled with financial losses, inefficiencies, and high operating costs, prompting repeated government interventions and reform attempts. The airline’s real estate holdings, especially in prime locations such as Islamabad’s Blue Area, are widely seen as some of its most valuable non-core assets.
Officials, however, have not confirmed whether the newly assessed property values will be directly used to settle outstanding liabilities or form part of any immediate transaction. They maintained that the current step is limited to valuation and information-gathering, which will support informed decision-making at later stages.
As the February 13 deadline approaches, market participants and stakeholders will be closely watching how the valuation process unfolds and whether it leads to concrete measures to ease PIA’s financial burden and address the concerns of creditors such as PSO.
