The erstwhile PIA was a proud flag carrier for Pakistan. It had trained much of the Middle East aviation industry. It was not only an airline but also a representation of Pakistani culture and pride. Then it started its journey towards nosediving into loss-making, and billions of rupees piled up as losses, becoming a headache for every successive government in Pakistan.

Pakistan International Airlines was privatised on 23 December 2025 and sold for Rs135 billion to the Arif Habib-led consortium. Last year, the bid failed because there was only one bidder, Lucky Group, which offered only Rs 10 billion against the government’s offer price of Rs 85 billion. This time, the government fixed the reserve bid price at Rs100 billion. Air Blue of Khaqan Abbasi offered only Rs26 billion and was knocked out in the first round. The bidding competition was televised openly. Lucky Group fixed the last bid price at Rs134 billion, whereas the Arif Habib-led consortium offered Rs135 billion and won the bid, immediately congratulated by Lucky Group. The privatisation of PIA is being appreciated by everyone, whether government ministers or businessmen; the reason might be its continued accumulation of losses every passing year.

Muhammad Ali, the Advisor to the Prime Minister on Privatisation, clarified that PIA’s valuable properties, including the Roosevelt Hotel in New York and the hotel in Paris, are not part of the privatisation deal. He explained that these assets will remain under government ownership. He also informed that three major airports will be offered to private companies for long-term management. The purpose of this step is to improve airport services, efficiency, and infrastructure while keeping ownership with the government.

Chaudhry Manzoor of the PPP, the government’s main coalition partner, strongly opposed the privatisation of PIA. He raised an interesting point: when people sell their own goods, they usually highlight their strengths, but the government is doing the opposite by emphasising negative aspects of PIA, even though it is now making a profit. He said that the government has sold PIA at a very low price. He shared the following information: he said that PIA owns properties in Lahore, Karachi, Islamabad, and Multan worth about Rs50 billion. Its transport vehicles are worth around Rs 10 billion, and its furniture and fixtures are valued at about Rs 55 billion. PIA’s aircraft are worth roughly Rs100 billion. Altogether, these assets total about Rs165 billion. In addition, PIA owns foreign properties, especially the Roosevelt Hotel in New York and other hotels, which are worth billions of rupees.

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The government divided Pakistan International Airlines into two separate entities: PIA Holding Company and PIA Airline Company. The main purpose of this split was to make the airline more attractive for privatisation and to manage its financial problems more effectively. Under this arrangement, PIA Holding Company keeps the heavy........

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