THE recent acquisition of 75% of Pakistan International Airlines (PIA) by a private consortium has sparked a heated debate across the nation. While many have reacted to the news with mixed emotions, the reality behind this privatization is more nuanced than it appears. For years, the government has been contemplating the privatization of PIA, mainly due to its long-standing financial difficulties, spiraling losses and a staggering debt load. However, a question arises: how could a private company take on such a burdened enterprise?

In order to make PIA more attractive to investors, the government came up with a strategic plan. They created a new entity, called the PIA Holding Company, to offload over 650 billion rupees worth of liabilities. This move wiped out around 80% of the airline’s total debt, which........

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