Prime Minister’s Adviser on Privatisation Muhammad Ali on Tuesday rejected criticism surrounding the privatisation of Pakistan International Airlines (PIA), stating that the move does not compromise national pride but instead aims to revive the airline’s efficiency and strength.
Speaking at a joint press conference with Federal Information Minister Atta Tarar in Islamabad, Ali said misinformation circulating on social media about the airline being sold below the value of its assets was misleading and ignored the realities of the transaction.
Ali explained that PIA once operated a fleet of around 50 aircraft, while currently only 17 to 19 planes are operational, with another 12 on lease. He noted that PIA facilitates travel for nearly four million passengers annually and described its landing and route rights as the airline’s most valuable assets. He expressed confidence that privatisation would help restore PIA’s lost stature over time.
The remarks came a day after a consortium led by Arif Habib Corporation emerged as the highest bidder for a 75 per cent stake in the national carrier, offering Rs135 billion in what officials described as a landmark transaction.
Addressing claims that the government would receive only Rs10 billion from the sale, Ali clarified that the state would receive 7.5 per cent in cash, amounting to Rs10 billion, and 25 per cent in equity value worth around Rs45 billion, bringing the total government share to Rs55 billion. He added that Rs125 billion would be reinvested into the airline to strengthen its operations.
Ali said PIA’s financial performance sharply declined after 2009, revealing that the airline accumulated losses of nearly Rs500 billion over the past decade. He stressed that the privatisation process was conducted transparently and witnessed by the entire nation.
In a separate interview, Ali said the new owner is expected to begin running the airline by April, subject to regulatory approvals. He added that the deal was structured to inject fresh capital rather than merely transfer ownership, ensuring the airline’s long-term viability.
