White Elephant No More as PIA Goes Private

ISLAMABAD: Pakistan has finally let go of its most troubled airline.The government has sold 75 percent of Pakistan International Airlines (PIA) to a consortium led by businessman Arif Habib for Rs135 billion, closing a long chapter marked by losses, bailouts and stalled reform efforts.

The auction, closely watched by investors and policymakers, was described by officials as a major breakthrough. According to Tribune, the sale ends years of failed privatisation attempts and signals a stronger push to reform state-owned enterprises.

Only two bidders reached the final stage after Airblue was disqualified for offering below the government’s minimum price. The contest concluded when a Lucky Cement-backed group withdrew, leaving Habib’s consortium as the highest bidder, Dawn reported.

Although the deal is valued at Rs135bn, officials clarified that only Rs10bn will go directly to the national treasury.The remaining amount will be invested back into PIA over time. The stated aim is to strengthen the airline’s operations rather than sell off its assets.

Prime Minister Shehbaz Sharif welcomed the transaction, calling it a “confidence booster” for Pakistan’s economy. Finance Minister Muhammad Aurangzeb said the privatisation process followed international standards and was carried out transparently.

Speaking after winning the bid, Arif Habib expressed confidence in reviving the airline. “PIA once led aviation in the region,” he told Dawn, promising fresh investment, improved management and gradual fleet expansion. The consortium plans to increase the number of aircraft and revive profitable international routes.

PIA has long been a burden on public finances, surviving largely through repeated government support. The sale aligns with Pakistan’s commitments under the IMF-backed reform programme, which aims to reduce fiscal losses and improve governance in public-sector institutions.

Industry observers say the PIA deal could open the door for further privatisation efforts, and if managed carefully, may help Pakistan rebuild a competitive and modern national airline.

Stay updated with the latest news here.