ISLAMABAD: In a statement on Thursday, Privatisation and Investment Minister Abdul Aleem Khan revealed that the government is committed to completing the privatization process for Pakistan International Airlines (PIA) within the next three months.
As part of a broader reform initiative urged by the International Monetary Fund (IMF), the Privatisation Commission announced in April 2024 that it would offer a stake of between 51% and 100% in the national carrier for sale.
A previous attempt to privatize PIA resulted in a $4.3 million loss to the national treasury, as informed by the National Assembly Standing Committee on Privatisation on February 26. This failure was attributed to a lack of buyer interest, which stemmed from various issues, including the 18% general sales tax on new aircraft purchases and PIA’s substantial liabilities.
In today’s press release, Minister Khan emphasized that a new strategy has been devised to make PIA’s privatization more appealing to potential investors. He confirmed that the entire process is expected to be completed within three months.
“The government has addressed all concerns raised by interested parties regarding PIA’s privatization,” Khan said. “We have made necessary adjustments based on their preferences to ensure a smoother process.”
Khan expressed confidence in PIA’s potential for profitability, stating that the revised privatization plan would enhance its feasibility and benefit the overall process. He also noted that the introduction of PIA flights to Europe has made the privatization environment more attractive and favorable.
“Thanks to recent measures, the national airline is on track to return to profitability,” he remarked.
Looking ahead, the Minister confirmed that flights to the United Kingdom would begin within the next three months, followed by services to the United States and the Far East in subsequent phases. He stressed that PIA remains the preferred choice for Pakistani travelers.
Khan concluded by reaffirming his belief in PIA’s potential to regain its former standing and profitability, emphasizing that positive changes would restore the airline’s credibility and bring it back to its peak.
