Pakistan International Airlines to Be Privatized by November 2025

ISLAMABAD- Pakistan International Airlines (PIA), the national flag carrier of Pakistan, is gearing up for privatisation by November this year as the government advances its long-anticipated restructuring plan.

The Senate Standing Committee on Privatisation was advised that four qualified bidders remain in the running to acquire Pakistan International Airlines Corporation Limited (PIACL), which operates from its base at Jinnah International Airport, Karachi (KHI).

Progress on PIA’s Privatisation

The Privatisation Commission’s secretary has confirmed that four groups have successfully made the shortlist, while two bidders were disqualified for not meeting the necessary criteria.

The eligible bidders must collaborate with established airlines to ensure effective operational management of PIA.

During the committee discussions, Senator Zeeshan Khanzada expressed concerns regarding the airline’s significant debt load of $2.31 billion.

Senator Dr. Afnan Ullah Khan proposed that selling PIA’s two overseas hotels could alleviate some financial pressure. There was also debate on whether the government should prioritize selling profitable assets.

According to local reports, the Privatisation Commission’s secretary mentioned that investors tend to favor profitable companies, although their long-term viability may not be guaranteed.

Bidding is expected to take place in the fourth quarter of 2025, between October and December, with plans to offer 51% to 100% of shares along with management control. This represents the second attempt to privatise PIA after last year’s unsuccessful effort.

Final Bidders for PIA’s Acquisition

The four shortlisted bidders represent a variety of industries:

• Consortium of Lucky Cement, Hub Power Holdings, Kohat Cement, and Metro Ventures – a prominent industrial alliance engaged in energy and cement.
• Consortium of Arif Habib Corporation, Fatima Fertiliser Company, City Schools (Pvt) Ltd, and Lake City Holdings (Pvt) Ltd – a diverse group involved in finance, education, real estate, and manufacturing.
• Fauji Fertiliser Company (FFC) – under the Fauji Foundation, it is a private limited company participating in this bidding.
• Airblue (Pvt) Ltd – the only airline among the bidders, bringing aviation operational expertise.

A fifth group that included Serene Air and Bahria Foundation was disqualified for not meeting the financial and technical benchmarks.

Debt, Assets, and Government Strategy

The significant debt burden faced by PIA remains a major hurdle in the privatisation process. While there are differing opinions among stakeholders on whether to prioritize profitable entities, the government insists on a balanced approach that considers both investor interest and long-term economic viability.

The idea of selling overseas assets like hotels has been revisited as a potential short-term solution to ease financial pressures.