Four companies have been prequalified to bid for a 75 per cent stake in Pakistan International Airlines (PIA), marking a significant step forward in the government’s renewed privatisation effort. A high-level meeting chaired by Prime Minister Shehbaz Sharif reviewed the airline’s restructuring and privatisation roadmap.
The prime minister directed that the remaining stages of the process be completed quickly and transparently, while also instructing officials to devise a plan to expand PIA’s operational fleet and ensure timely flight operations.
Officials briefed that the prequalified bidders will participate in the upcoming auction, which covers a majority stake in the national carrier. They also emphasised that PIA’s name and branding will remain intact post-privatisation.
The airline’s business plan outlines an increase in operational aircraft from the current 18 to 38 by 2029, alongside an expansion of domestic services from over 30 cities to more than 40.
The meeting was attended by senior cabinet members, including Defence Minister Khawaja Asif, Law Minister Azam Nazir Tarar, Finance Minister Muhammad Aurangzeb, Economic Affairs Minister Ahsan Khan Cheema, and the prime minister’s adviser on privatisation, among others.
The government revived the PIA privatisation initiative after last year’s failed attempt, when the only bid received — Rs10 billion for a 60 per cent stake — fell far short of the government’s floor price.
Relaunched in April 2025, the process invited expressions of interest for a 51- to 100-per-cent share. Eight entities responded, and four were shortlisted in July after federal review. Final bidding and negotiations are expected to take place before the end of the year.
The privatisation of PIA would represent Pakistan’s first major asset sale in nearly twenty years. Reforming loss-making state-owned enterprises remains a key requirement of the country’s ongoing $7 billion IMF bailout programme, with PIA’s restructuring seen as a central test of Islamabad’s commitment to economic reform.
