The Lahore High Court (LHC) Rawalpindi Bench dismissed a petition that had challenged the privatisation of Pakistan International Airlines (PIA), thus clearing a major legal obstacle in the government’s effort to divest its majority stake in the loss-making airline.
According to media reports, Justice Jawad Hassan issued a brief order rejecting the petition, stating that a detailed judgment would follow later.
The petition had contested the legality of the privatisation, claiming that the federal government issued an advertisement for the sale of PIA without fulfilling requirements outlined in Section 23 of the Privatisation Commission Ordinance, 2000.
The petitioner’s lawyer argued that the government failed to properly assess PIA’s assets and ignored Supreme Court precedents regarding such transactions. He also contended that the high court had jurisdiction under Article 199 of the Constitution to review violations of law by statutory bodies.
He referenced a Supreme Court ruling in the Arshad Waheed vs Province of Punjab case that clarified the scope of judicial review.
However, Justice Hassan noted that while courts can review administrative actions, judicial restraint should be exercised in economic policy matters, particularly those involving financial decisions made by expert statutory bodies.
The petitioner also opposed an amendment to Section 28 of the Privatisation Commission Ordinance, introduced by the caretaker government in 2023, which led to the establishment of an appellate tribunal. He argued that this tribunal was unnecessary since high courts already have constitutional authority to hear such cases.
Barrister Minaal Tariq, representing the Privatisation Commission, defended the government’s position, stating that the petition was legally and factually flawed. She emphasized that all legal requirements, including asset evaluations, had been met, and the previous privatisation attempt had become irrelevant after the sole bid was rejected.
She further argued that the current privatisation process adhered to Article 173 of the Constitution and the Pakistan International Airlines Corporation (Conversion) Act, 2016. With the government owning 96% of PIA’s shares, she stressed that a competitive sale was crucial to address the airline’s financial issues and meet Pakistan’s commitments to the International Monetary Fund (IMF).
The court also noted other similar cases pending before the Sindh High Court (SHC) and a separate LHC bench. Justice Hassan referred to precedents set by the SHC in the KESC Labour Union case and the interpretation of the PIAC (Conversion) Act 2016, confirming that a broader judicial framework was already in place.
