Islamabad: The federal government retains the option to divest its remaining 25 per cent stake in Pakistan International Airlines (PIA) within three months of the transfer of management control to a private consortium, officials said, as the airline’s privatisation process moves into its next phase.
Under the revised ownership structure, the government holds a 25 per cent shareholding, while 75 per cent management control has been transferred to a private sector consortium led by the Arif Habib Group. Officials said the option to sell the remaining stake is built into the transaction framework and may be exercised following an initial transition period.
PIA officials said the airline is currently operating a fleet of 18 aircraft, comprising 12 leased planes and six owned aircraft undergoing scheduled maintenance. They noted that the existing fleet is insufficient for network expansion and that additional aircraft would be required to improve operational capacity and service delivery.
On route restoration, officials confirmed that flights to London are scheduled to resume from March 29, while Paris operations are currently running twice a week. Manchester services are planned at three flights per week. Flights to Malaysia are continuing, along with operations to Saudi Arabia focused primarily on Hajj and Umrah traffic.
Officials said a key component of the privatisation process involved separating the airline’s legacy assets and liabilities, which have been transferred to PIA Holding Company. This restructuring has allowed the operating airline to maintain a clean balance sheet, a step officials described as essential for attracting private investment and ensuring commercial viability.
They clarified that major overseas properties, including the Roosevelt Hotel in New York and the Scribe Hotel in Paris, were not included in the privatisation deal and remain under government ownership through PIA Holding Company.
According to officials, the airline’s financial performance has shown improvement following the restructuring. Sources familiar with the matter said PIA posted a profit of around PKR 26 billion in 2024, followed by an additional profit of approximately PKR 6.8 billion in the first half of 2025, largely reflecting the impact of balance sheet clean-up and operational reforms.
Internal assessments suggest that PIA would require a fleet of at least 25 to 30 aircraft to operate sustainably and support future expansion plans, though officials said the timeline for achieving this target would depend on strategic decisions taken by the new management.
Samra Zulfiqar, a real estate analyst at Zameen.com, is passionate about finding projects that offer buyers the best returns. Her keen insights spotlight the market’s most promising opportunities.
