ISLAMABAD: Prime Minister, Shehbaz Sharif is moving ahead with plans to offload the operational assets of Pakistan International Airlines Company Limited (PIACL) in the last quarter of 2025, signaling a major shift in the country’s aviation sector. A 60 to 90-day due diligence process will begin this week.
This was revealed by the officials of Privatisation Commission while giving briefing to National Assembly’s Standing Committee on Privatization, presided over Dr. Farooq Sattar.
Secretary of the Privatization Commission, Usman Akhtar Bajwa, confirmed that four consortiums have been prequalified to enter the buy-side due diligence phase starting Tuesday. This stage, which typically takes two to three months, is critical for evaluating the financial and operational health of PIACL before final bids are submitted.
The shortlisted groups include ;(i) a consortium featuring Lucky Cement, Hub Power Holdings, Kohat Cement, and Metro Ventures ;(ii) another led by Arif Habib Corporation, along with Fatima Fertilizer, City Schools, and Lake City Holdings ;(iii) Fauji Fertilizer Company Limited ; and (iv) Air Blue (Pvt) Ltd
These contenders, three of whom participated in previous bidding rounds, will now have access to detailed data under strict confidentiality protocols. Fly Jinnah, associated with Air Arabia, opted out due to its limited expertise in managing full-service international carriers.
While the government seeks to attract credible investors through a transparent and competitive process, the fate of the airline’s workforce remains under the spotlight. The committee recommended that job retention for the 6,700 employees should be ensured for a period of at least three to four years’ post-privatization.
Secretary Bajwa acknowledged that around 20–25% of PIA’s staff is currently surplus but argued that a growing fleet and expanded routes may create opportunities for reabsorption. In the last privatization attempt, a retention period of only 18 months had been negotiated.
Beyond the airline, the commission is also working on the privatization of Roosevelt Hotel in New York, with expressions of interest expected by August 2025. Progress is also being made toward finalizing an agreement with the European Union regarding FWBL, aimed at strengthening women-led financial institutions in Pakistan.
Adding a hopeful note, Air Vice Marshal (Retd.) Muhammad Amir Hayat, CEO of PIA, told the committee that the airline’s joint operations with Turkish Airlines and Ethiopian Airlines are showing promise. He also pointed to the resumption of flights to Manchester, UK, as a sign of financial recovery in progress. Ends
CCP imposes penalties of Rs 1 billion on cartels and deceptive advertisers
ISLAMABAD: The Competition Commission of Pakistan (CCP) issued 12 major orders during FY 2024-25, imposing penalties worth Rs1.007 billion on...
Read more
