The privatization of PIA has entered its final phase, with pre-qualified bidders completing due diligence. Fauji Fertilizer, Arif Habib, Airblue, and Lucky Cement are expected to submit bids by November 17, 2025. The government aims to complete the process by December 2025.
Officials told the Senate Standing Committee on Privatization, chaired by Senator Dr. Afnanullah Khan, that the new investor will be required to hire additional staff for PIA. The government plans to sell between 51% and 100% of the airline’s shares. The International Monetary Fund (IMF) has eased conditions to support the privatization.
PIA’s routes to Europe and the UK have reopened, and a technical review of the fleet is underway. Gulf airlines reportedly avoided the bidding, preferring a weaker PIA to limit competition. Government officials remain confident, citing serious bidders who have invested significantly in due diligence.
The airline owns five properties in Pakistan and seven abroad, with total liabilities of Rs. 150 billion. Simultaneously, the government is advancing plans to outsource Islamabad, Lahore, and Karachi airports. Talks with the UAE involve a proposed 56% revenue share for Islamabad Airport. The plan aims to improve airport standards and efficiency.
The Senate Committee was also briefed on the privatization of PIA’s Roosevelt Hotel in New York. Multinational firms have shown interest in a joint venture to rebuild the property, with the government retaining exit rights.
Additionally, PIA Holding Company’s business complex in Karachi has been transferred to the Pakistan Air Force. Employee dues of Rs. 4 billion will be settled, with the Pakistan Engineering Complex contributing Rs. 2.5 billion.
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Officials also highlighted the successful privatization of First Women Bank. The government expects this round of PIA privatization to attract strong bids, strengthen the national carrier, and mark a key step in improving Pakistan’s aviation sector.
