{"id":65,"date":"2025-12-25T12:05:48","date_gmt":"2025-12-25T12:05:48","guid":{"rendered":"https:\/\/www.worldwatchalert.com\/?p=65"},"modified":"2025-12-25T12:05:49","modified_gmt":"2025-12-25T12:05:49","slug":"pia-likely-to-come-under-new-management-from-april-says-pms-adviser","status":"publish","type":"post","link":"https:\/\/www.worldwatchalert.com\/?p=65","title":{"rendered":"PIA Likely to Come Under New Management From April, Says PM\u2019s Adviser"},"content":{"rendered":"\n

Islamabad, December 24<\/em> \u2014 Pakistan International Airlines (PIA) is expected to be run by new owners from April 2026, subject to regulatory and government approvals, as the federal government moves ahead with the long-delayed privatisation of the national flag carrier, Adviser to the Prime Minister on Privatisation Muhammad Ali said on Wednesday.<\/p>\n\n\n\n

Speaking to Reuters<\/em> in an online interview, Ali said the process had entered its final stages following a successful bidding round, with a consortium led by the Arif Habib Corporation emerging as the top bidder for a 75 per cent stake in PIA.<\/p>\n\n\n\n

The consortium offered Rs135 billion in a live-televised auction on Tuesday, exceeding the government\u2019s reserve price of Rs100 billion and marking a major breakthrough after a failed privatisation attempt last year.<\/p>\n\n\n\n

\u201cThe expectation is that, subject to approvals, the new owner will be running the airline by April,\u201d Ali said.<\/p>\n\n\n\n

According to him, the deal now requires approval from the Privatisation Commission Board and the federal cabinet, which is expected within days. Contract signing is likely within two weeks, followed by a 90-day period to meet regulatory and legal requirements before financial close.<\/p>\n\n\n\n

Under the agreement, the government will receive around Rs10 billion in upfront cash and retain a 25 per cent stake in the airline, valued at approximately Rs45 billion. Ali said the transaction was deliberately structured to inject fresh capital into PIA rather than simply transferring ownership.<\/p>\n\n\n\n

\u201cWe did not want a situation where the government sells the airline, takes its money and the company still collapses,\u201d he said.<\/p>\n\n\n\n

The winning consortium includes Arif Habib Corporation along with Fatima Fertilizer, City School Network and Lake City Holdings Limited. Ali said Fauji Fertilizer Company, which initially showed interest but did not bid, could still join the consortium as a partner. He added that the buyer is allowed to bring in up to two additional partners, including a foreign airline, provided they meet the qualifying criteria.<\/p>\n\n\n\n

Allowing additional partners would strengthen the consortium financially and could bring international aviation expertise, he said.<\/p>\n\n\n\n

The privatisation deal is being closely watched by the International Monetary Fund (IMF), which has repeatedly urged Pakistan to stem losses at state-owned enterprises. Ali said PIA\u2019s sale was a key test of Pakistan\u2019s reform credibility.<\/p>\n\n\n\n

\u201cFailure to offload loss-making state firms puts pressure back on public finances,\u201d he said, adding that successfully closing the deal would demonstrate momentum on reforms and pave the way for future privatisations.<\/p>\n\n\n\n

To safeguard the process, Ali said the government has put in place protections, including retained earnest money, standby letters of credit and a demand promissory note. If the deal fails to close, the government would have the option to move to the second-highest bidder.<\/p>\n\n\n\n

On labour concerns, Ali said the buyer is required to retain all existing employees for at least 12 months after the transaction, with no changes to employment contracts. He noted that PIA\u2019s workforce has already been reduced over the years.<\/p>\n\n\n\n

Addressing a separate press briefing in Islamabad, Ali said the \u201cstrategic sale\u201d of PIA had been under discussion for nearly two decades, with the latest successful attempt the result of six months of intensive effort, due diligence and coordination among stakeholders.<\/p>\n\n\n\n

He credited Prime Minister Shehbaz Sharif, the federal cabinet, Deputy Prime Minister Ishaq Dar and Chief of Defence Forces Field Marshal Asim Munir for their guidance and support during the process.<\/p>\n\n\n\n

Recalling PIA\u2019s decline, Ali said the airline once operated around 50 aircraft, a number that should have doubled by now, but currently stands at just 18 planes.<\/p>\n\n\n\n

\u201cWe reached this stage because several mistakes have been committed in the past,\u201d he said, adding that running commercial businesses is not the government\u2019s role. \u201cThe private sector is best suited to run such enterprises.\u201d<\/p>\n\n\n\n

Responding to criticism that the government would receive only Rs10 billion from the deal, Ali said this was a misinterpretation. He explained that while 7.5 per cent of the bid amount would come as cash, the government would also retain equity worth Rs45 billion, bringing the total value to Rs55 billion. The remaining funds, around Rs125 billion, would be injected directly into the airline.<\/p>\n\n\n\n

\u201cIn total, the valuation of PIA is Rs180 billion,\u201d he said.<\/p>\n\n\n\n

Ali noted that between 2015 and 2024, PIA incurred losses of nearly Rs500 billion, making it unattractive to investors without restructuring. He defended the government\u2019s decision to remove long-term debt from the airline, saying no buyer would have invested otherwise.<\/p>\n\n\n\n

\u201cWe haven\u2019t lost our pride,\u201d he said. \u201cThere is no pride in owning an airline that cannot fly.\u201d<\/p>\n\n\n\n

Referring to statements by Arif Habib Corporation, Ali said the new owners plan to expand PIA\u2019s fleet to around 65 aircraft within four years, signalling a shift toward growth and improved service quality.<\/p>\n\n\n\n

The adviser said the airline had been privatised at the \u201cright time,\u201d expressing hope that private investment and professional management would finally put PIA on a sustainable and profitable footing.<\/p>\n","protected":false},"excerpt":{"rendered":"

Islamabad, December 24 \u2014 Pakistan International Airlines (PIA) is expected to be run by new owners from April 2026, subject to regulatory and government approvals, as the federal government moves… <\/p>\n","protected":false},"author":1,"featured_media":66,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9],"tags":[],"class_list":["post-65","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-economy"],"yoast_head":"\nPIA Likely to Come Under New Management From April, Says PM\u2019s Adviser - World Watch Alert<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.worldwatchalert.com\/?p=65\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"PIA Likely to Come Under New Management From April, Says PM\u2019s Adviser - 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