The privatization of Pakistan International Airlines (PIA) has entered its final phase, with major companies completing their due diligence ahead of bidding. The Privatization Commission has set November 17, 2025, as the date for bidding, aiming to wrap up the process by December 2025.
According to officials, four pre-qualified bidders — Fauji Fertilizer, Arif Habib, Airblue, and Lucky Cement — are in the final stages of review. The Senate Standing Committee on Privatization, chaired by Senator Dr. Afnanullah Khan, was informed that the new investor will be required to hire more staff for PIA.
The government plans to sell between 51% and 100% of PIA’s shares. The International Monetary Fund (IMF) has reportedly relaxed some conditions to help the process move faster. Officials added that PIA’s routes to Europe and the UK have reopened, and a technical review of the fleet is underway.
Interestingly, Gulf airlines have opted out of the bidding process. Reports suggest they prefer PIA to remain weak to avoid market competition. However, the government is confident about success this time, citing serious interest from local investors who have already spent significant sums on due diligence.
PIA currently owns five properties in Pakistan and seven abroad, but it also carries liabilities of around Rs150 billion.
Meanwhile, the government is progressing with its plan to outsource major airports in Islamabad, Lahore, and Karachi. Talks with the UAE are underway after a Turkish company’s bid for Islamabad Airport failed. The UAE has expressed readiness to invest and proposed a 56% revenue share, aiming to upgrade airport facilities to international standards.
The committee was also briefed on the future of PIA’s Roosevelt Hotel in New York. A new financial advisor is being finalized, with multiple multinational firms and investment banks showing interest. One proposal includes demolishing the current building to develop a new structure under a joint venture, allowing the government to exit at any time.
In another update, the PIA Holding Company’s business complex in Karachi has been handed over to the Pakistan Air Force. The 200-acre complex will continue to produce defense-related equipment. Employee dues of Rs4 billion will be cleared, with the Pakistan Engineering Complex contributing Rs2.5 billion.
Officials also confirmed the successful privatization of the First Women Bank and ongoing efforts to finalize PIA’s privatization terms. The government hopes this process will mark a turning point for PIA and restore stability to the national airline.
In other news read more about: PIA Privatisation Bid Deadline Extended to Nov 17
