Pakistan’s PIA Privatisation Advances After Bids for 75% Stake

Pakistan has taken a major step toward privatising its national carrier, Pakistan International Airlines (PIA), after receiving competitive bids for a 75% stake in the loss-making airline, government officials confirmed on Tuesday. The development marks a significant milestone in Islamabad’s long-delayed efforts to reform state-owned enterprises and stabilise the country’s fragile economy.

According to officials familiar with the process, multiple local and international investor groups submitted bids as part of a transparent auction process overseen by Pakistan’s Privatisation Commission. The government has been seeking strategic investors capable of injecting capital, improving management, and restoring confidence in the airline, which has struggled for years with heavy debt, operational inefficiencies, and declining service standards.

PIA’s financial troubles have placed a significant burden on public finances, with repeated bailouts required to keep the airline operational. Authorities say privatisation is aimed at ending taxpayer support while modernising the carrier to compete with regional and global rivals. The sale of a controlling stake would also allow private investors to take over management decisions, a key demand from potential bidders.

The move comes as Pakistan works to meet economic reform commitments tied to international financial assistance, including agreements with the International Monetary Fund. Structural reforms, particularly in state-run enterprises, have been a central focus of talks with lenders seeking long-term fiscal stability.

Labour unions, however, have expressed concerns over job security and potential restructuring following privatisation. Government officials have sought to reassure employees, saying protections and transition arrangements will be part of the final agreement. Still, resistance from unions remains a sensitive political issue.

Aviation analysts say successful privatisation could help revive PIA’s fortunes if new owners invest in fleet upgrades, route expansion, and service improvements. However, they caution that challenges such as regulatory hurdles, fuel costs, and regional competition will continue to test the airline’s recovery.

The government is expected to evaluate the bids in the coming weeks before announcing a preferred buyer. If completed, the transaction would represent one of Pakistan’s most significant privatisation deals in years, signaling a broader push toward economic reform and private-sector participation

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