Pakistan consortium acquires 75pc stake in PIA

KABUL (Pajhwok): A consortium led by a Pakistani investment firm acquired a 75 percent stake in the state-run Pakistan International Airlines (PIA) during a televised auction, representing a significant milestone in the government’s long-delayed effort to privatise the loss-making national carrier.

The Arif Habib consortium secured the majority shareholding with a winning bid of 135 billion rupees (approximately $482 million). Once regarded as one of the region’s leading airlines, PIA has struggled for decades with financial losses and mismanagement, the Washington Times reported.

Finance Minister Muhammad Aurangzeb, addressing the bidding ceremony, emphasised that the privatisation process had been transparent and competitive, according to The Washington Times.

The sale meets a longstanding demand from the International Monetary Fund (IMF), which has repeatedly called on Pakistan to privatise the airline as part of broader economic reforms tied to bailout programmes.

The auction follows PIA’s resumption of direct flights to Europe two months ago, after the European Union Aviation Safety Agency lifted a four-year ban imposed over safety concerns. The ban was introduced in 2020 following the Karachi crash that claimed 97 lives.

Once hailed as a model airline, PIA has deteriorated over the years due to political interference and chronic overstaffing.

The airline employs approximately 300 staff per aircraft across its 32-strong fleet, one of the highest employee-to-aircraft ratios in the industry. By comparison, most airlines operate with fewer than 200 employees per aircraft, which is considered a standard productivity benchmark.

sa/ma