Web Desk

ISLAMABAD: Pakistan on Tuesday moved closer to privatizing its national flag carrier as the bidding process for Pakistan International Airlines Corporation Limited (PIACL) entered its decisive stage, marking one of the government&rsquo;s most significant state-owned enterprise reform initiatives.&nbsp;Three consortia, led by AirBlue, Arif Habib Private Limited, and Lucky Cement, are competing to acquire a 75% stake in the airline. The process follows Fauji Fertilizer Company (FFC) withdrawing from the bidding race, though FFC retains the option to join the winning consortium at a later stage.&nbsp;According to privatization minister Muhammad Ali, the two unsuccessful bidders will be excluded from any future role in the airline&rsquo;s management. He explained that losing bidders would have no right to join the winning bidder, and only groups that were not parties to the auction would be able to enter the new management.&nbsp;To safeguard the integrity of the privatization, the government has introduced a key condition preventing unsuccessful bidders from participating in the airline&rsquo;s future management. Privatization minister Ali said this measure aims to ensure transparency and avoid post-auction arrangements that could undermine competition.&nbsp;Under the announced schedule, sealed bids were submitted to the Privatization Commission at 10:30 a.m., while the bids are set to be opened at 3:30 p.m. in a formal ceremony attended by the bidders. The reference price for the transaction will be approved by the Privatization Commission Board and the Cabinet Committee on Privatization only after bids are received.&nbsp;The entire bidding process is being broadcast live on television and digital platforms to reinforce transparency.&nbsp;Ahead of the auction, reports emerged of informal discussions between some bidding groups regarding a potential shared stake. However, Lucky Cement Chairman Muhammad Ali Tabba and government officials clarified that these interactions were private in nature and not facilitated by the government, and that they had no impact on the bidding process.&nbsp;Officials remain confident that the current auction will avoid the shortcomings of the previous privatization attempt, when a single bidder offered Rs10 billion for a 60% stake, far below the reference price of Rs85 billion, leading to the cancellation of the sale.&nbsp;The government views the privatization of PIA as a critical step towards improving operational efficiency, reducing fiscal burden, and attracting long-term private investment into Pakistan&rsquo;s aviation sector.

Economy

Three bidders, Lucky Cement, Arif Habib Pvt Ltd, and AirBlue, are in the race to acquire a 75% stake in the airline.

Privatization process of Pakistan International Airlines kicks off

ISLAMABAD: In what could mark Pakistan&#39;s first major privatization in nearly two decades, Pakistan International Airlines (PIA) is set for a crucial bidding process on Tuesday, with the entire auction broadcast live on national television to ensure transparency. Prime Minister Shehbaz Sharif originally announced the decision during a high-level meeting with business leaders and representatives from pre-qualified bidding consortia earlier this month, according to the Prime Minister&#39;s Office. The sale is seen as a key test of Pakistan&rsquo;s broader economic reform agenda, as the government seeks to cut losses from state-owned enterprises and revive investor confidence. Islamabad has launched a five-year privatization plan covering 24 state entities between 2024 and 2029, including the Roosevelt Hotel in New York, three banks, power distribution companies, and the Postal Life Insurance Company, the Privatisation Commission of Pakistan confirmed. With the exit of Fauji Fertiliser Company Ltd, three parties remain in contention: Lucky Cement group, Arif Habib Corporation, and private carrier Airblue. Privatization of loss-making state firms has long been urged by the International Monetary Fund (IMF), as the country seeks to address fiscal and external financing challenges. The PIA sale is a key requirement under the country&#39;s $7 billion IMF bailout program agreed in September. Privatization Adviser Muhammad Ali said the government plans a full divestment of the airline, beginning with the auction of a 75% stake on Tuesday, with the remaining 25% to be offered later at a 12% premium. Signs of recovery and future plansThe airline has shown recent improvement. PIA reported its first annual profit in 21 years for fiscal year 2024, earning an operational profit of $13.7 million. The European Union lifted its four-year flight ban in November 2024; PIA resumed service to Paris in January 2025 and restarted flights to the UK in October 2025. This marks Pakistan&#39;s third attempt at privatization, following a failed 2024 auction that received only one bid of $35 million &mdash; far below the government&#39;s $298 million floor price, according to Privatisation Commission records. Under the new business plan, PIA&#39;s fleet is expected to expand from 18 to 38 aircraft by 2029, with service to over 40 cities. The government is targeting $302 million in privatization proceeds this year, though Ali said restoring PIA&rsquo;s operations remains the priority over maximizing short-term revenue.

A Pakistan International Airlines aircraft taxis before takeoff for France at Islamabad International Airport. (File/AFP)

Pakistan will auction Pakistan International Airlines on Dec. 23 in a live televised bidding process, with three parties competing. The sale is part of a broader government plan to privatize 24 state-owned enterprises.

Pakistan to broadcast live auction for PIA privatization

ISLAMABAD: Pakistan International Airlines (PIA) resumed direct flights to the United Kingdom on Saturday, marking the restoration of services that had remained on hold for the past five years.&nbsp;The development follows the UK&rsquo;s decision in July to allow the national carrier to operate once again, after assessing that Pakistan&rsquo;s aviation safety standards meet international requirements. Earlier this month, the UK Civil Aviation Authority issued a Foreign Aircraft Operating Permit to PIA, completing the final procedural step. <div class="fr-embed"><div class="twitter-tweet twitter-tweet-rendered" style="display: flex; max-width: 550px; width: 100%; margin-top: 10px; margin-bottom: 10px;"><iframe id="twitter-widget-1" scrolling="no" frameborder="0" allowtransparency="true" allowfullscreen="true" title="X Post" src="https://platform.twitter.com/embed/Tweet.html?dnt=false&embedId=twitter-widget-1&features=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%3D%3D&frame=false&hideCard=false&hideThread=false&id=1982017808142926068&lang=en&origin=https%3A%2F%2Fmain.d1wrm1qseko1cp.amplifyapp.com%2Fsections%2F&sessionId=1955e616218c9bd2515cd73355e0e0aa6832ae8c&theme=light&widgetsVersion=2615f7e52b7e0%3A1702314776716&width=550px" style="position: static; visibility: visible; width: 550px; height: 576px; display: block; flex-grow: 1;" data-tweet-id="1982017808142926068"></iframe></div></div>&nbsp;Speaking at the ceremony held at Islamabad International Airport, Defense Minister Khawaja Asif said the restoration of flights reflected the commitment and coordinated efforts of Pakistani aviation authorities.&nbsp;&ldquo;After a long and difficult delay of five years, today the resumption of flights from Islamabad to Manchester is a feat we have achieved through our hard work and determination,&rdquo; he said. Asif noted that significant improvements had been made in pilot training, licensing processes and aircraft safety compliance during this period.&nbsp;PIA has started with a twice-weekly service between Islamabad and Manchester, with plans to expand operations to London and Birmingham in the coming months. A PIA spokesperson confirmed that the first flight, carrying 284 passengers, departed for Manchester on Saturday afternoon.&nbsp;The airline had also resumed flights to Paris earlier this year after receiving clearance from European aviation authorities in late 2024.&nbsp;The government continues efforts to strengthen the national carrier and has reiterated its commitment to restructuring and reforming the organization.

PIA resumed direct flights to Manchester on Saturday after a five-year hiatus, following safety and regulatory improvements. The airline plans to add London and Birmingham routes next.

Pakistan national carrier resumes direct flights to Britain after five-year hiatus

ISLAMABAD: Pakistan International Airlines (PIA) has received clearance to resume flights to the United Kingdom (UK), nearly five years after services were suspended in the wake of a fatal 2020 crash.&nbsp;The national flag carrier announced on Wednesday that it had secured Third Country Operator (TCO) certification from the UK&rsquo;s transport department, allowing it to restart operations between Pakistan and Britain.&nbsp;&ldquo;PIA gets TCO Certification from UK. Plan to resume UK operations by next month,&rdquo; the airline said in a post on X, formerly Twitter.&nbsp;PIA flights are expected to resume in October, starting with services to Manchester, the first since the suspension following the 2020 Karachi crash that claimed 97 lives and triggered international scrutiny of Pakistan&rsquo;s aviation safety standards.&nbsp;The UK&rsquo;s decision follows a comprehensive audit of Pakistan&rsquo;s aviation oversight systems. Alongside PIA, private airline Airblue has also been granted a TCO license, paving the way for its entry into the UK market.&nbsp;Initially, routes will focus on Manchester and Leeds, with plans to expand to Birmingham, London, and Heathrow in the near future, according to Gulf News.

Foreign Affairs

Pakistan International Airlines has received UK clearance to resume flights after a five-year suspension following a 2020 crash. Operations will restart in October, beginning with Manchester, alongside private carrier Airblue’s UK approval.

Articles tagged with "PIA"

Privatization process of Pakistan International Airlines kicks off

Pakistan to broadcast live auction for PIA privatization

Pakistan national carrier resumes direct flights to Britain after five-year hiatus

Pakistan’s national carrier set to resume UK flights after five-year hiatus