ISLAMABAD- Pakistan will fail to meet the July 2025 deadline set by the International Monetary Fund (IMF) for the privatization of Pakistan International Airlines (PIA).
Muhammad Ali, Adviser to the Prime Minister on Privatisation and Chairman of the Privatisation Commission, confirmed the delay, stating the process will now conclude by December 2025. The privatization plan includes safeguards for employee rights and service continuity, addressing concerns raised by airline unions and industry stakeholders.
Photo: Aero Icarus | FlickrPakistan Airlines Privatization
A new Expression of Interest (EoI) will be published in the last week of April 2025 for prospective bidders. Potential investors will assess the airline’s assets and balance sheet in July, while bid evaluations will continue through September.
Pakistan’s earlier attempt to privatize PIA last year collapsed when it received only a single offer, significantly below the asking price of more than USD 300 million. This latest delay represents another in a series of postponements for the troubled airline’s privatization.
The Pakistani Privatisation Commission Board has approved the transaction structure for this second privatization attempt. The decision came during a meeting chaired by Muhammad Ali. The plan involves divesting 51 percent to 100 percent of PIACL’s share capital, along with management control.
Photo: By Shadman Samee; Wikimedia CommonsGrowing Interests
Despite previous setbacks, the process for PIA’s privatization has gained momentum, with sources reporting significant interest from major business groups, ANI reported.
“The board recommended to CCOP (Competition Commission of Pakistan) the transaction structure proposed for the 2nd attempt of PIACL privatization based on the divestment of 51 percent to 100 percent share capital of PIACL together with the management control of PIACL.”
Ministry of Privatisation
The Privatisation Commission Board also discussed the privatisation of the Roosevelt Hotel in New York, which is owned by PIA. The board decided to seek a briefing from a financial advisor before proceeding with that process.
Photo- Alan Wilson; Wikimedia CommonsPakistan’s Privatisation Plans
Pakistan’s government has intensified efforts to privatize state-owned enterprises as part of economic reforms required by international lenders. The PIA privatisation represents a cornerstone of these efforts aimed at reducing the financial burden on the national treasury.
The airline has operated at a loss for years, accumulating substantial debt that strains government resources. Officials believe private ownership will bring operational efficiency and financial stability to the carrier while allowing the government to focus resources on essential public services.
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Pakistan Airlines Records Profit After 21 Years, Seek Privatization Plans
The post Pakistan Int’l Airlines Privatization Timeline Extended to December 2025 appeared first on Aviation A2Z.
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