LAHORE: The Lahore High Court has directed the federal secretary for privatisation to decide objections in two similar petitions challenging the sell-off of the Pakistan International Airlines (PIA).

Justice Malik Awais Khalid passed two separate orders, disposing of as many petitions filed by Nabeel Javed Kahloon, a lawyer, and Hadayatullah Khan, the president of Peoples Unity, the PIA employees’ union.

During the hearing, Advocate Kahloon, who represented both petitions, argued that the privatisation of the PIA was not in accordance with law. He said the whole process must be presented before the Council of Common Interest (CCI).

The lawyer stated that the constitutional condition had not been followed by the government.

He pointed out that the company could not issue fresh shares as no amendment had been made in this regard and a bill for the purpose had also been withdrawn.

He said the PIA had been sold out at a nominal price as in estimate only Rs4bn would be transferred in the public exchequer.

He claimed that massive public funds have been injected into the airline over decades and its sale to a private group is a matter of significant public interest.

Additional Attorney General Nasar Ahmad Mirza raised objection to the maintainability of the petition. He said the petition could not be entertained as it was a policy decision. He also clarified that the respondents were not issuing fresh shares but transferring the existing shares of the company.

Advocate Kahloon argued that the legal and constitutional objections highlighted in the petitions had never been addressed by any forum.

The additional attorney general suggested the court to remit the matter to the privatisation secretary to decide the objections raised by the petitioners after affording an opportunity of personal hearing.

The counsel said he has no objection if the objections are decided by upholding the principle of fairness and transparency.

The federal law officer assured the court that the secretary would decide the matter in accordance with law.

Justice Khalid referred the petitions to the privatisation secretary with a direction to hear the petitioners and pass a well-reasoned order after hearing all concerned strictly in accordance with law within two weeks.

The judge instructed both petitioners to appear before the secretary on Jan 26 at 11am.

The Cabinet Committee on Privatisation (CCoP) had endorsed a Rs135bn bid from an Arif Habib Group-led consortium for a 75 per cent stake in the airline.

The winning bid was approximately 35pc higher than the government’s reference price of Rs115bn. The consortium has pledged to invest an additional Rs80bn to Rs125bn into the airline for fleet modernisation and operational restructuring.

Published in Dawn, January 24th, 2026