The Future of PIA’s overseas assets has become clearer after official clarification from the government. Adviser to the Prime Minister on Privatization Muhammad Ali has confirmed that PIA’s hotels in New York and Paris are not included in the airline’s privatization deal.
Speaking on a private television programme, Muhammad Ali said the government had set an expected bid value of up to Rs120 billion for Pakistan International Airlines. He added that the final offer exceeded expectations and benefited both sides.
According to the adviser, Rs125 billion from the privatization transaction will go directly into PIA. He said this financial support will help stabilize the national airline and improve its operations. He also expressed satisfaction with the final deal price.
The Future of PIA’s international properties has been a topic of public debate. Muhammad Ali made it clear that the New York and Paris hotels will remain outside the privatization process. He stressed that these assets are separate from the airline’s core operations.
He further revealed that PIA currently operates 18 aircraft. He noted that the government has been trying to privatize the airline for several years. Multiple attempts failed due to weak investor interest and financial concerns.
Now that a consortium has successfully emerged, the adviser said attracting new partners will be easier. He added that private ownership would allow the airline to expand and modernize faster.
Muhammad Ali also spoke about future privatization plans. He said airports in Lahore, Islamabad, and Karachi will be offered through an open auction process. The aim is to ensure transparency and fair market competition.
Looking ahead, the Future of PIA’s broader restructuring is linked to national economic reforms. The adviser said the government expects further progress on privatization in 2026. He explained that privatization generates higher tax revenues compared to state-run management.
He also emphasized that real economic improvement is not possible without reforming the energy sector. According to him, privatization remains a key tool to reduce losses and improve efficiency.
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Concluding his remarks, Muhammad Ali said the PIA deal was completed at a good price. He added that the transaction marks an important step toward long-term sustainability for the airline.
