Sialkot: Aviation Minister Khawaja Asif welcomed the European Commission and the European Aviation Safety Agency’s (EASA) decision to lift the suspension on Pakistan International Airlines (PIA), stating that the move would enhance the value of the struggling national carrier.
“This is a significant development for PIA’s upcoming privatization effort. It will add considerable value to the transaction,” Asif said during a media briefing in Sialkot on Saturday.
The comments came a day after EASA officially ended its ban on PIA, paving the way for the airline to resume operations to Paris, France, after more than four years of restrictions. The decision follows a year-long process that included visits by EASA and European Commission teams to Pakistan.
The privatization of PIA has been a key challenge for authorities in Islamabad. The government initially offered a stake of 51% to 100% in the debt-laden airline as part of IMF-recommended reforms tied to a $7 billion, 37-month bailout program. However, the first privatization attempt faced setbacks.
Only one bid, from Blue World Consortium, was submitted for a 60% stake, offering Rs. 10 billion—far below the Privatization Commission’s Rs. 85 billion minimum price. The bid was rejected, prompting the government to initiate a second privatization attempt.
Minister Asif praised the efforts of government officials and his team, emphasizing the groundwork laid by former Aviation Minister Saad Rafique during the PDM government. “Saad Rafique’s leadership set the foundation for these achievements, and we have now reached our goal,” he said.
He also highlighted the challenges faced by PIA, noting that it holds only 30% of Pakistan’s aviation market, while foreign airlines dominate the remaining 70%. Despite this, Asif expressed optimism, saying the lifting of the EASA ban would enable PIA to regain European and other international traffic.
Asif revealed that EASA has also approved Air Blue for operations, while another Pakistani airline is under audit and expected to gain approval soon. He urged his hometown’s airline, Air Sial, to pursue EASA registration to enable flights to Europe, enhancing Pakistan’s aviation market presence further.
