Islamabad — Pakistan International Airlines (PIA) is expected to come under new private management from April, subject to regulatory and cabinet approvals, marking a decisive moment in the government’s long-running effort to reform the loss-making national carrier.
The development was confirmed by the Prime Minister’s Adviser on Privatisation, who said that the successful bidder for a majority stake in PIA is likely to formally take charge of operations once all legal and procedural requirements are fulfilled. Officials indicated that the approval process is already underway and a final agreement could be signed in the coming weeks.
Under the privatisation deal, a consortium led by major Pakistani business groups has agreed to acquire 75 per cent shares of PIA, while the government will retain a 25 per cent stake. The structure of the transaction is aimed not only at transferring ownership but also at injecting fresh capital into the airline to support fleet expansion, operational improvements and service upgrades.
The adviser noted that the government’s objective is to ensure that PIA becomes a commercially viable and professionally managed airline, rather than continuing as a financial burden on the national exchequer. He said lessons were learned from past privatisation attempts, and this time the focus is on long-term sustainability rather than a one-off sale.
Officials also revealed that the new owners may bring in strategic partners, including potential foreign airlines, to provide technical expertise and strengthen PIA’s operational capabilities. Such partnerships, they believe, could help the airline regain lost routes and improve its global standing.
The privatisation of PIA is being closely monitored by international financial institutions, including the International Monetary Fund (IMF), which has repeatedly stressed the need for Pakistan to reduce losses from state-owned enterprises as part of broader economic reforms.
If approvals are granted on schedule, the transition of management in April could usher in a new era for PIA, with expectations of improved efficiency, better service quality and a gradual return to profitability. However, analysts caution that the success of the move will depend on swift reforms, disciplined management and sustained investment.
For now, all eyes remain on the approval process, as Pakistan prepares to hand over the reins of its national airline to private operators for the first time in decades.
This story has been reported by PakTribune. All rights reserved.