Govt has no plans for PIA privatisation: Dar

E-Paper | June 14, 2026

ISLAMABAD: Finance Minister Ishaq Dar on Sunday said the government has no plans to privatise Pakistan International Airlines (PIA) and is only seeking a strategic partner for the national flag carrier, Radio Pakistan reported.

He said efforts will be made to invite credible and reputed international strategic partners to invest to the extent of 26 per cent in the core business of PIA, adding that no lay-offs will be made in the organisation.

Dar claimed there had been a visible improvement in the airline's operations as a result of the government's efforts, pointing out that the number of operational aircraft at PIA has increased from 18 to 38 ─ a figure which, he said, would rise to 40 by the end of December 2015.

The average aircraft age has been reduced from 14 years to nine years, he said, with the government aiming to bring it down even further to six years.

The presidential ordinance recently issued by the government was aimed at freeing PIA management from government control, enabling it to make decisions independently, the finance minister said.

The announcement comes amidst a series of strikes by PIA employees against the proposed privatisation of the national flag carrier.

Pakistan International Airlines Corporation (PIAC) was converted from a statutory corporation into a company governed by the Companies Ordinance, 1984, by means of a presidential ordinance No XVII dated Dec 4, 2015. The new entity is called Pakistan International Airlines Corporation Limited (PIACL), PIA Chairman Nasser N. S. Jaffer confirmed on Dec 6.

Though the PIA management and the government insist that the conditions for its employees would remain unchanged, the workers’ unions and the opposition parties have criticised the move.

Management claims that the airline employees in every grade and category would stand transferred to the company, PIA Company Limited, with the same designation and on the same terms and conditions as they held in PIA Corporation.

The assurances, however, have fallen short of convincing workers and their associations.

Our readers are at the heart of everything we do.
Do you have a thought to share or a way we can improve? We’d love to hear it. Reach out to us at feedback@dawn.com.

Pakistan

PIA employees go on token strike

Kamal Pasha

Dec 20, 2015 01:38pm

Dar does not know what is happening in the country. For that matter not a single minister know how to run the ministry. They are not qualified at all for the job.

Recommend 0

Common Man

Dec 20, 2015 01:41pm

PIA employees should stop protesting every other day for no reason at all, a little known fact is that our pilots get higher wages then most other airlines and they dont have the same work pressure, the crew stops over for days on international flights even if its a 10 hour journey, other airlines usually ask the crew to fly back within 24 hours.

Recommend 0

sukhera

Dec 20, 2015 01:45pm

PIA is a sick enterprise and losing money in the millions. People like Mr. Dar are the problem and big hurdle for the development of Pakistan. NS should get rid off of him asap. Pakistan made a commitment to IMF that it will privatize PIA. How many billions of dollars the govt is willing to throw in this bottomless pit

Recommend 0

Common Man

Dec 20, 2015 01:49pm

Over Staffing and increasing wages for employees without a reason and merit... And still they keep protesting! All this money could be spent on better planes and services!

Recommend 0

Common Man

Dec 20, 2015 01:51pm

@sukhera Completely agree with you!

Recommend 0

KM3

Dec 20, 2015 02:06pm

Well it seems there is something still left in PIA, for these people to rob & loot from it. And once the bones are visible PIA will be privatized.

Recommend 0

karan

Dec 20, 2015 02:11pm

If privatization brings in a fresh cash injection, allows the airlines to be more profitable, improves efficiency and service standards then what is the issue. The middle eastern carries are minting billions on the subcontinent traffic while Air India and PIA just watch from their wheelchairs.

Recommend 0

bkt

Dec 20, 2015 02:12pm

What he really means is that no one is willing to buy PIA in its present shape.

Recommend 0

Tazu

Dec 20, 2015 02:12pm

But what about your commitment to IMF to privatise PIA before june 2017 ? Please clarify you are lying to IMF or to people of Pakistan ?

Recommend 0

Musleh Uddin Ahmad

Dec 20, 2015 02:20pm

The bluff game continues in every sphere of public interest. No let up.

Recommend 0

uk-expat

Dec 20, 2015 02:24pm

PIA will never be privatised. Look at the perks ,both government and PIA officials are getting from PIA especially free and subsidised flights. PIA should have been bankrupt long time ago but as it's affiliation with the PPP is so strong that nobody dares to touch it. Just a suggestion, give it to NLC (National logistic corporation) and see the company thrive.

Recommend 0

Faisal

Dec 20, 2015 02:30pm

Incompetency at his best.

Recommend 0

Rome cruiser

Dec 20, 2015 02:46pm

Unbelievable! They need to off-load this airline ASAP.

Recommend 0

Jalbani Baloch

Dec 20, 2015 03:42pm

Privatization is essential for the development and growth of any institution or organization, especially for those institutions, which are controlled by the State e.g. PIA and Steel Mill. The Government must pursue the policy of privatization and should not bow-down before the protesting employees, who are simply lazy and shirkers and do not want to work.

Recommend 0

adnan

Dec 20, 2015 03:51pm

a U turn by govt. now. pia should be privatized despite all pressures......pakistani nation is a bitter and substance less people. govt. do not run steel mills and big airliners in a sucessful democratic economy

Recommend 0

Skeptic

Dec 20, 2015 04:27pm

Oh ok, so business as usual, till PIAC goes bankrupt and thousands stranded overseas? And the purpose of converting the corporation into a company was.... a useless exercise, and waste of more money!??

Recommend 0

Muhammad Arshad

Dec 20, 2015 04:29pm

Privatization is the best option, but its Govt's decision, they have to make sure that they are efficient and profitable.

Recommend 0

Mahmood

Dec 20, 2015 04:41pm

If it was upto me, I would fire the entire organization, and start from scratch as a new airline with fresh talent, new strategy and experienced operational staff.

Recommend 0

logicaldude

Dec 20, 2015 04:41pm

Just before writing these lines I checked the fare for next day travel from Houston to New York, (oneway) Rs 17,900(US$171) distance of 2279 KM Rs.7.90per KM. Karachi to Islamabad, (Oneway) Distance 1143 KM. Cost Rs.33,000, Rs. 28.9 per KM. Try as many combinations as you desire the result is the same we are being overcharged for bad service. After charging almost 4 times more PIA is still losing money. The labor unions want to keep their well paying, big benefit, no work jobs at public expense. We have lost enough money sell the air line and get out.

Recommend 0

khanm

Dec 20, 2015 05:44pm

Govt has no plans for PIA privatization: Dar... who would buy PIA with so much liability...but in Pakistan ....Debt is one person's liability, but another person's asset...depends who is buying it and how much he pays...

Recommend 0

Danish Mehmood

Dec 20, 2015 05:53pm

PIA has its permanent customers in millions, unlike many smaller airlines in the aviation industry of the world. there is no other reason for its losses except mismanagement. a team of honest, dedicated professionals can still breathe life in our national carrier.

Recommend 0

M Rafique

Dec 20, 2015 06:46pm

If so, what is the purpose of the ordinance issued regarding PIA

Recommend 0

hamid shafiq

Dec 20, 2015 07:31pm

Sale this white elephant and save money of tax payers please request to you Dar sahib.

Recommend 0

GAWAL MANDI YA

Dec 20, 2015 10:38pm

PIA has been driven right in the ground,yes Dar I don't see any reason to save the airline.

Recommend 0

Hassan

Dec 20, 2015 11:24pm

People just look at balance sheet and income statement. Expenses of staff is way too low compared to other countries as employees in pk get rs not dollars so that itsef is not the reason. Reason is corruption and political involvement. Evennin previous ns era they were almost done with selling at a very cheap rate to their friends.

Recommend 0

Shah

Dec 21, 2015 01:17am

If we sale PIA we can earn 15 billion dollar our reserves will be from 20 to 35 billion dollar same with steel mill and Prime Minister,s House.

Recommend 0

probono publico

Dec 21, 2015 04:10am

One of main reason why PIA could not become a top airline carrier is because we never allowed joint ventures with foreign renowned airlines such as PAN AM at that time. In joint ventures no corruption is allowed.

Recommend 0

asad

Dec 21, 2015 04:13am

Bullseye Pakistan! Thanks to IMF/WB/ADB.

Recommend 0

Arshad

Dec 21, 2015 05:38am

Dar saheb, fix it. It is the most pathetic airlines in the world now. Do you see that? Or your government wants to prove once again that they don't know how to fix our national airlines.

Recommend 0

Uzair

Dec 21, 2015 06:15am

Privatize this subsidized state owned enterprise failure. The jiyalas have corrupted this organization to the core!

Recommend 0

Lost Lakha

Dec 21, 2015 06:27am

As a First step set up a Board of Directors including a Chairman from amongst Business community, and let them run the affairs independently, purely as a business; as it is carried out by Banks, Insurance Companies, Shipping Companies Etc. Once in command of the situation, they will themselves bring in the required investment and takeover the charge within next three years as the latest. Politicians, Bureaucrats and or the Ruling Party in the Government must be kept out of such a set up. There is no harm in giving it a try!

Recommend 0

Branded Content

Why SQD-Mini LED is the display breakthrough we’ve been waiting for?

The display industry is entering a new phase, where reducing trade-offs is as important as pushing performance limits.

The Palms at Silk Gardens introduces a new family address in Karachi

The Palms places families at the heart of its vision, offering thoughtfully planned 2 and 3-bedroom units in a secure, peaceful and community-led environment.