PIA privatisation expected to conclude early next month, Senate committee told

The Senate Standing Committee on Defence, chaired by Senator Muhammad Talha Mahmood, was informed on Friday that the privatisation of Pakistan International Airlines (PIA) is expected to conclude early next month. 

During the briefing, officials told the committee that Arif Habib Limited, Fauji Fertiliser Company (FFC), Air Blue, and Lucky Group have submitted bids for the privatisation of PIA, and all participating firms have sought certain relaxations in the government’s terms and conditions.

The government, however, has decided that PIA’s name and national flag will remain unchanged, ownership will stay with Pakistani nationals, and no foreign individual or entity will be permitted to hold a majority share.

The committee was also briefed on PIA’s suspended services to the United Kingdom and Europe. In 2018, the airline operated 1,420 flights on these routes, generating Rs36 billion in revenue against Rs39 billion in expenses. In 2019, PIA operated 478 flights, earning Rs15 billion in revenue with Rs13 billion in expenditure. 

The suspension of European operations, which continued until 2022, caused financial losses of around Rs13 billion and damaged the airline’s international reputation, officials said.

The committee chair directed authorities to curb misuse of PIA’s facilities, end free air travel privileges, and take legal action against any unlawful union activities within the airline.

Members were also briefed on the operations of the Airports Security Force (ASF), which provides services at 14 operational airports and covers 16 non-operational airports, adding strain to its resources. The ASF workforce currently consists of 10% female and 90% male personnel.

Senator Saleem Mandviwalla proposed upgrading passenger and baggage screening systems, while the chairman called for the use of modern technology, including a marking system for suspect passengers. He also expressed concern over weak security measures at smaller airports, particularly in Peshawar and Balochistan, and urged immediate improvements.

The committee further discussed the lack of PIA flights to Chitral, with the chairman highlighting its strategic importance due to its proximity to border regions and potential connectivity to Central Asia via Tajikistan if a linking tunnel were constructed.