The PIA sale process is moving closer to completion, as officials confirmed key developments during a Senate committee meeting in Islamabad. Authorities said the agreement for the PIA sale was finalised on January 29, with financial closure expected by the end of April.
According to the Privatisation Commission, final proposals are being prepared by steering and working committees. These steps are necessary to complete the PIA sale and transfer operations to new management. Officials also confirmed that Pakistan International Airlines has been converted into an equity-based company as part of the restructuring.
Pakistan International Airlines has faced significant financial challenges over the years. Privatisation Commission Secretary Usman Bajwa told the committee that without the PIA sale, the airline would continue to lose around Rs100 billion annually. He added that the airline accumulated losses of nearly Rs500 billion between 2015 and 2023.
Officials informed the committee that 75 percent of shares have already been sold. The remaining 25 percent stake will be offered later. As part of the restructuring, liabilities worth Rs650 billion have been moved to a holding company. Another Rs180 billion in payables has been transferred to the new buyer.
The majority stake has been acquired by a consortium led by Arif Habib Group. The group is now working to appoint a new management team and chief executive officer. Officials also said Fauji Fertilizer Company will join the consortium after cabinet approval.
The committee also reviewed employee welfare concerns. Officials shared that PIA has around 16,500 pensioners. More than 26,000 individuals benefit from its medical services. A fund of Rs450 million has been established to cover medical expenses before privatisation.
Senator Afnanullah Khan directed authorities to address complaints from retired employees. He emphasized the need to ensure proper healthcare facilities after the PIA sale is completed.
In addition, the committee discussed other matters, including the performance of the Pakistan Mineral Development Corporation. Members called for improved operations and better revenue generation.
Officials also highlighted the potential of Gwadar airport for regional connectivity. The committee noted that its location could attract more international air traffic.
In other news read more about Hurdles in PIA Sale to Be Cleared Soon
Overall, the PIA sale marks a major step in reforming Pakistan’s aviation sector. Authorities believe the move will reduce financial losses and improve operational efficiency.
