Former finance minister Miftah Ismail criticized the provincial governments of Khyber Pakhtunkhwa and Punjab for expressing interest in acquiring Pakistan International Airlines (PIA). Miftah argued that no government globally operates an airline, questioning the logic behind provincial bids for the national carrier. This criticism follows the federal government’s unsuccessful attempt to privatize PIA after the only bid, from Blue World City, offered Rs10 billion for a 60% stake—far below the minimum asking price of Rs85 billion, leading to a failed negotiation.
This marked Pakistan’s second attempt in a decade to sell the national airline, after a similar effort stalled in 2015, reported The News. To keep PIA under Pakistani ownership, Khyber Pakhtunkhwa’s Board of Investment and Trade (BOIT) expressed “earnest interest” in bidding on the airline, pledging a bid higher than Rs10 billion in a letter to Privatisation Minister Abdul Aleem Khan.
Following KP’s interest, the Punjab government, led by Maryam Nawaz, also showed interest, with former Prime Minister Nawaz Sharif revealing that Maryam had urged him to rebrand the carrier as “Air Punjab.”
Reflecting on these moves, Miftah commented, “A province’s duty is to ensure education, healthcare, and public welfare,” lamenting that provinces “rely on central financial support rather than generating their own revenue.” Responding to the failed privatisation, he pointed to PIA’s restrictive conditions, which he said discouraged buyers despite interest from four potential groups.
Pakistan’s efforts to privatize PIA come as the country faces IMF pressure to reform its fiscal policies under an ongoing loan program. With a commitment to privatize loss-making state-owned enterprises, Pakistan missed the IMF’s expectation to finalize PIA’s sale by September, delaying the auction deadline from August 14 to October 31 amid low investor interest.
