ISLAMABAD: Pakistan International Airlines’ privatisation process is moving into its next stage, with officials indicating that the federal government has the option to divest its remaining 25% stake, valued at around Rs45 billion, within a three-month period following the transfer of management control to a private consortium, Business Recorder reported.
According to PIA officials, the airline is now operating under a revised ownership structure in which the government retains a 25% shareholding, while 75% management control rests with a private sector consortium led by the Arif Habib Group.
Officials said PIA currently operates a fleet of 18 aircraft, including 12 leased planes and six company-owned aircraft undergoing scheduled maintenance. They noted that the existing fleet is not sufficient to support network expansion and that additional aircraft will be required to improve service delivery.
On route restoration, officials confirmed that London flights are scheduled to resume on March 29, while Paris operations are running twice a week. Manchester services are planned at three flights per week. Flights to Malaysia are continuing, alongside Saudi Arabia operations focused on Hajj and Umrah traffic.
PIA management said the airline’s legacy assets and liabilities have been separated and transferred to PIA Holding Company, allowing the operating entity to maintain clean commercial books. Officials said the restructuring was a prerequisite for attracting private investment and supporting competitive operations.
They further clarified that the Roosevelt Hotel in New York and the Scribe Hotel in Paris were not part of the privatisation transaction. These properties remain under government ownership through PIA Holding Company, with their commercial strategies being handled separately.
Officials reported improvement in operational profitability following the balance sheet restructuring and asset transfers, describing the airline’s financial performance as showing a positive trend.
Sources familiar with the airline’s finances said PIA recorded a profit of around Rs26 billion in 2024, followed by an additional profit of approximately Rs6.8 billion in the first half of 2025, largely reflecting the impact of restructuring measures.
On fleet planning, sources said internal assessments suggest PIA would need a minimum of 25 to 30 aircraft to operate sustainably and support expansion plans, though the timeline for achieving this target will depend on strategic decisions taken by the new management.
