Pakistan Civil Aviation Authority (PCAA) Director General Nadir Shafi Dar has said that the successful privatisation of Pakistan International Airlines (PIA) reflects the government’s strong resolve to overhaul and modernise the country’s aviation sector. He described the development as a milestone achieved through sustained reforms, regulatory improvements, and international confidence-building measures.
In an official statement issued on Tuesday, the PCAA chief highlighted that the privatisation outcome was not an isolated event but the result of years of institutional reforms aimed at restoring credibility to Pakistan’s aviation industry.
Lifting of EU and UK bans boosted investor confidence
Dar credited Defence Minister Khawaja Asif and Secretary Defence Lt Gen Muhammad Ali for providing crucial support that enabled the Civil Aviation Authority to implement long-overdue reforms. These efforts ultimately led to the removal of aviation restrictions imposed by the European Commission and the United Kingdom.
He said the lifting of the EU and UK flight bans played a decisive role in the success of the PIA privatisation. According to him, these developments significantly improved investor confidence and directly contributed to the sharp rise in the airline’s valuation. The bid value for PIA increased dramatically from around Rs10 billion in 2024 to Rs135 billion in the most recent auction.
Aviation reforms recognised by global regulators
The PCAA director general further noted that the International Civil Aviation Organisation (ICAO) has expressed full confidence in Pakistan’s aviation oversight and regulatory framework. He described ICAO’s endorsement as a strong validation of the reforms undertaken by the Civil Aviation Authority in recent years.
Dar added that the successful privatisation of PIA is expected to stimulate growth across Pakistan’s aviation sector. It will likely support the expansion of local airlines and open doors to new international destinations through direct connectivity from Pakistan.
Arif Habib-led consortium wins PIA bid
PIA’s privatisation process concluded with the Arif Habib Corporation Limited–led consortium acquiring a majority stake in the national flag carrier. The consortium emerged as the highest bidder with an offer of Rs135 billion during the open auction.
During the bidding process, Arif Habib raised its offer from Rs115 billion after the Lucky Cement Limited–led consortium increased its bid from Rs101.5 billion to Rs134 billion in the second round. The competitive bidding underscored renewed confidence in PIA’s future prospects.
Arif Habib, chief of the Arif Habib Group, termed the successful privatisation a “triumph of Pakistan.” He said the move would help revive investor sentiment, attract foreign investment, and strengthen the overall economy. He also praised the government and the Privatisation Commission for conducting what he described as a transparent and professional bidding process.
Habib reaffirmed the consortium’s commitment to restoring PIA’s past stature, saying focused management and investment would be used to make the airline competitive again at regional and global levels.
