Govt to complete PIA’s privatisation within 3 months: Aleem Khan

Published March 6, 2025
A photo of Privatisation and Investment Minister Abdul Aleem Khan. — screengrab
A photo of Privatisation and Investment Minister Abdul Aleem Khan. — screengrab

Privatisation and Investment Minister Abdul Aleem Khan on Thursday said that the government would complete all the steps to privatise Pakistan International Airlines (PIA) during the next three months.

As part of reforms urged by the International Monetary Fund (IMF), the Privatisation Commission said in April 2024 that it was putting on the block a stake ranging from 51 per cent to 100pc of the national carrier.

The government’s failed first attempt to privatise PIA cost the national exchequer $4.3 million, the National Assembly Standing Committee on Privatisation was informed on February 26. The lack of interest shown by the buyers during the first round of privatisation was due to multiple reasons, including the 18pc general sales tax on the purchase of new aircraft and the national carrier’s liabilities, the committee was informed.

In the press release issued by the privatisation ministry today, the minister said that a new roadmap was being provided to make PIA’s privatisation more attractive, adding, “It is expected that all stages of this privatisation process will be completed within the next three months.”

He said all concerns of the parties interested in PIA’s privatisation process were addressed properly. “Consequently, the government has decided to make changes according to the preferences of the interested parties for the privatisation of PIA,” he added.

The minister asserted that there was no doubt that PIA possessed the potential to become profitable and expressed hope that the privatisation process would become more feasible, which would positively impact the overall process.

“There is an expectation of better expressions of interest from investors this time around, as the introduction of PIA flights to Europe has made the privatisation environment even more lucrative and favourable,” the minister was quoted as saying in the press release.

“Due to recent measures, the national airline is ready to become profitable again.”

The minister said that after Europe, flights to the UK would begin within the next three months.

“Following Europe and the UK, flights to the United States and the Far East will be functional in the next phase,” he added, highlighting that PIA was “the first choice for travel” for Pakistanis.

He asserted that PIA’s credibility would be restored and the airline would be brought back to its peak with positive steps.

“There is no doubt that PIA still possesses the potential to become profitable once again,” he said.

Follow Dawn Business on X, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

Editorial

Tribunal delays
30 Apr, 2025

Tribunal delays

IS justice to be delayed till such time that it becomes meaningless? At least that is the impression one gleans from...
Missing growth
30 Apr, 2025

Missing growth

PAKISTAN faces a paradox: its economy has been stabilising but growth remains elusive. The ‘feel good’ part of...
Info wars
Updated 30 Apr, 2025

Info wars

Indian state and media would do well to adopt a more rational approach, and stop spreading anti-Pakistan hatred.
Canal consensus
Updated 29 Apr, 2025

Canal consensus

There is urgent need for such high-level engagement and consultation, especially considering climate-related crises Pakistan faces.
Incursions thwarted
29 Apr, 2025

Incursions thwarted

THE military’s media wing has released details of infiltration attempts by terrorists based in Afghanistan, saying...
Pension reforms
29 Apr, 2025

Pension reforms

The federal government has finally notified another pension reform that requires retired public servants rehired by...