Pakistani minister says government to finalize PIA privatization by end of October

View of the Pakistan International Airlines (PIA) passenger plane, taken through a glass panel, at Islamabad International Airport, Pakistan October 3, 2023. (REUTERS/File)

• Pakistan planned to finalize the privatization deal on Independence Day, August 14, but it was delayed
• Khawaja Asif says PIA is facing a debt burden of $2.9 billion, can’t operate on routes lacking viability

ISLAMABAD: The government plans to finalize the privatization process of Pakistan International Airlines (PIA) by the end of next month, according to a senior federal minister who shared the information while addressing the National Assembly on Monday.
Pakistan’s Deputy Prime Minister Ishaq Dar took up the issue of PIA flight restoration to the United Kingdom during his five-day visit to Britain, where he met top government officials and described the issue as a “major priority” for his government.
The suspension of PIA flights to the UK and Europe followed a 2020 plane crash in Karachi that killed 97 people. This was compounded by a controversial statement from Ghulam Sarwar Khan, the aviation minister in former Prime Minister Imran Khan’s administration, who asserted that a significant number of Pakistani pilots held fake licenses, leading to the European Union Aviation Safety Agency (EASA) ban on PIA.
The situation also impacted the privatization process of the airline, though Dar said the government would start receiving the first round of bids on October 1.
“Federal Minister for Defense Khawaja Asif informed the National Assembly on Monday that the privatization process of Pakistan International Airlines will be finalized by the end of October,” the APP reported.
He said PIA was facing a debt burden of Rs800 billion ($2.9 billion), adding its flights would not operate on routes that lack financial viability.
The government initially planned to finalize the airline’s privatization deal on the country’s Independence Day, August 14, but it was delayed following requests from bidders who were waiting for PIA’s latest audited accounts, aircraft lease agreements and clarity on flights to Europe.
There are 88 commercially operated state-owned enterprises in the country, and the government has approved the sale of 24 of them in its five-year privatization plan ending in 2029.
The privatization of loss-making state-owned entities is also important due to the recommendation of the International Monetary Fund (IMF), which has given staff-level approval to a fresh $7 billion loan to Pakistan.