The Supreme Court of Pakistan (SC) has withdrawn its earlier order that had halted the privatisation of Pakistan International Airlines (PIA), allowing the government to move forward with the process. This decision was made by the Constitutional Bench, led by Justice Amin-ud-Din Khan, effectively closing the case.
The court had previously stayed the privatisation of PIA, but today’s ruling clears the path for the government to proceed. During the hearing, the Additional Attorney General informed the bench that the government had received approval to hire new professionals for PIA, and while the privatisation process had been delayed, the airline’s flight operations were no longer restricted. Justice Khan acknowledged that the government might secure better rates for the privatisation but stressed that the process must be transparent.
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Justice Jamal Mandokhail further emphasized that the government should comply with the court’s instructions and keep the court informed throughout the process. The Additional Attorney General confirmed that a request had been filed with the court to keep it updated on the privatisation.
The government’s previous attempt to privatise PIA faced hurdles due to lack of cooperation from the Ministry of Finance. Privatisation Minister Abdul Aleem Khan stated that a failed attempt to sell PIA was due to the Ministry of Finance’s refusal to accommodate the bidders’ demands, including the write-off of Rs45 billion in negative equity on PIA’s balance sheet and the exemption from 18% sales tax on aircraft leases.
The government had also tried to sell PIA to a single bidder, a real estate developer, who offered Rs10 billion against a reserve price of Rs85.03 billion. The bidder’s requests for exemptions and adjustments in liabilities were not met, which contributed to the failure of the deal.
