PRIME Minister Shehbaz Sharif’s directive to expedite the privatisation of PIA, while emphasising transparency, is reassuring given that several past transactions have been plagued by opacity that virtually halted the process for years. The Supreme Court’s intervention in the Pakistan Steel Mills’ sale in 2006 became a landmark case when the court halted the process over reports of irregularities. The PSM has since been shut down but continues to incur losses in billions of rupees. Likewise, the buyers of a major bank had to face several politically motivated inquiries by anti-corruption agencies that failed to find any wrongdoing in the sale. Hence, a World Bank report has identified judicial activism, litigation, perceptions of corruption and weak political commitment as key factors that have undermined Pakistan’s privatisation efforts post-2007. The bank has also recommended public offerings through stock exchange with transparent parliamentary oversight to avoid potential litigation on future transactions.

It is in this context that the PM’s explicit call for complete transparency in the upcoming sale of the national carrier amounts to an admission of past failures. Whether this directive translates into a process transparent enough to withstand public scrutiny remains to be seen. Yet the focus on transparency does signal awareness that credibility of PIA’s sale is essential for successful privatisation efforts. The assurances extended by the Privatisation Commission chairman that prospective buyers of PIA will not be offered any guarantees must help reinforce public trust in the transparency of the privatisation process. PIA’s sale is positioned as Pakistan’s first major privatisation in nearly two decades and remains a key structural benchmark under the IMF’s $7bn bailout programme. The successful sale of 75pc of PIA’s shares with management control in a transparent manner to one of the four prequalified bidders is crucial not only for meeting IMF programme requirements but also reviving the privatisation agenda and demonstrating the government’s commitment to reforms.

Published in Dawn, November 22nd, 2025