Pakistan PM Fast-Tracks PIA Privatization to Late Q2 2025

Pakistan’s Prime Minister Shehbaz Sharif has accelerated the deadline for Pakistan International Airlines (PIA) privatization to June 2025, moving it forward by four months. However, Minister for Economic Affairs Ahad Khan Cheema told a World Bank delegation that PIA remains a second-tier priority, with power distribution companies taking precedence.

According to Pakistan Today, the Prime Minister has instructed the Privatization Commission to revise the implementation roadmap and address potential legal challenges. He emphasized the urgency of reducing PIA’s reliance on state financial support.

Meanwhile, Dawn reported that Cheema confirmed PIA’s privatization is in “phase 2”, following previous failed attempts to secure a buyer. In 2024, Blue World City’s bid of PKR10 billion (USD36 million) for a 60% stake was rejected, as it fell far below the government’s PKR85 billion (USD304 million) valuation.

Unlike past efforts, the government will retain PIA’s non-core assets and will not saddle the buyer with PKR45 billion (USD161 million) in liabilities, including tax debts, aviation fees, and pensions.

Additionally, PIA’s planned return to London Heathrow for summer 2025 is delayed, as the airline leased its two weekly slot pairs to Saudia for flights from Riyadh using a Boeing 787-9. While PIA awaits UK Civil Aviation Authority approval, recent developments, including the EU lifting its flight ban, could enable Paris CDG flights to resume soon.

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Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com