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ISLAMABAD: The Privatization Advisor, Muhammad Ali, announced on Thursday that the privatization of Pakistan International Airlines (PIA) will generate Rs 55 billion for the national exchequer, significantly higher than the initially cited Rs 10 billion.
Addressing a press conference alongside Minister for Information Attaullah Tarar, Ali emphasized that this move is a critical step toward restoring the airline’s “lost glory.”
Clarifying the financial structure of the deal, Muhammad Ali explained that the government would receive Rs 10 billion in cash, while the remaining Rs 45 billion represents government equity.
The advisor painted a grim picture of the airline’s financial health to justify the urgency of the sale. He revealed that PIA’s losses had ballooned to Rs 700 billion by 2024, maintaining a consistent downward trend since 2015 when its negative equity was recorded at Rs 213 billion.
The press conference highlighted the severe operational constraints currently facing the national flag carrier:
- Limited Fleet: Out of a total of 33 aircraft, only 18 are currently operational.
- Reliance on Leases: Of the 18 active planes, 12 are operated on lease.
- Technological Lag: 24 aircraft in the fleet were manufactured before 2010, while only two planes have been added since 2017.
“By now, PIA should have had a fleet of 100 aircraft,” Ali remarked, noting that the airline currently serves 40 million passengers annually but has shrunk from a global player to a regional one, with its primary international footprint limited to the Middle East.
Minister for Information Attaullah Tarar termed the privatization a “historic milestone,” asserting that the process was conducted with unprecedented transparency. He noted that, on the Prime Minister’s instructions, the bidding process was broadcast live to the public.
Tarar acknowledged the efforts of the Privatization Commission and the leadership of Prime Minister Shehbaz Sharif and the military leadership in navigating a process that had faced numerous failures over the last two decades. He also thanked former Finance Minister Miftah Ismail for endorsing the bidding as a “transparent and excellent” exercise.
The advisor noted that while the privatization journey began in 1990 and gained formal momentum in 2005, it took six months of intensive work by the current team to reach this stage. Despite the sale, the government retains a 25% stake in the airline.
Officials concluded by identifying PIA’s international landing routes as its most valuable remaining assets, which are expected to be leveraged by the new management to revitalize the airline’s global standing.
