Govt to finalize Pakistan International Airlines' privatization in coming months

Pakistan is aiming to finalize the privatization of its loss-making national carrier, Pakistan International Airlines (PIA), within the next two to three months, while expressions of interest (EOIs) for the iconic Roosevelt Hotel in New York will be invited in August.

The financial advisor for the Roosevelt Hotel is finalizing the transaction structure, while the PIA process is entering its advanced stages.

So far, five parties have submitted EOIs for the airline, with four cleared by the scrutiny committee to proceed to due diligence. These shortlisted bidders have now been granted access to PIA’s financial accounts and operational data from Tuesday.

Privatization Commission Secretary Usman Bajwa briefing the National Assembly’s Standing Committee on Privatization that the government aims to complete PIA’s privatization by the final quarter of 2025. However, no decision will be made until investors are fully satisfied, he stressed.

"The winning bidder will be required to expand PIA’s fleet from the current 19 aircraft to at least 45," he said.

The chairman of the panel and its members emphasized job security for PIA employees, calling for a three-to-five-year employment guarantee. Bajwa reassured lawmakers that employee protection is being factored into the privatization deal, noting that the airline’s workforce has already been rationalized from 11,000 to 6,000.

Bajwa revealed that Pakistan’s leading business groups have expressed keen interest in the airline, as they have the capital to revamp operations. “We also invited regional carriers to participate in the bidding,” he said.

PIA’s CEO informed the committee that the airline has resumed flights to France, and Manchester-bound services are also expected to return soon. “PIA’s operational performance has improved considerably compared to last year,” he claimed.