PIA privatization nears as four companies in race

The privatization process of Pakistan International Airlines (PIA) is heading towards its final stage as four companies participated in the bidding process, which included Arif Habib Limited, Fauji Fertilizer Company, Air Blue, and Lucky Group, reported 24NewsHD TV channel on Saturday. 

Sources said that the final decision is expected to be finalized at the start of next month.

The Senate Standing Committee on Defence was briefed about the process during a meeting chaired by Senator Muhammad Talha Mahmood. 

Defence officials said that all participating companies requested relaxations in the government’s terms. 

Despite this, the government has made it clear that PIA’s name will remain unchanged. The national flag will stay on the planes. Ownership will remain with Pakistani nationals. No foreign company or individual can hold a majority stake.

The committee was also informed about the closure of PIA’s operations in the United Kingdom and Europe. In 2018, PIA operated 1,420 flights on these routes. It generated Rs36 billion in revenue, while expenses were Rs39 billion. 

In 2019, flights dropped to 478, generating Rs15 billion in revenue against Rs13 billion in costs. Operations continued smoothly until 2022, but the suspension caused a financial loss of Rs13 billion. Officials said it also damaged PIA’s reputation internationally.

Senator Talha Mahmood recommended strict measures to prevent misuse of PIA services. He ordered the immediate stop of free air travel privileges. He also stressed that unlawful union activities must be addressed according to the law.

Reporter: Ashraf Khan