Islamabad, June 19, 2025 —
Today marks a critical deadline in Pakistan’s economic reform journey as Expressions of Interest (EoIs) for up to a 100% stake in Pakistan International Airlines Corporation Limited (PIACL) are due by 4:00 PM. This move is part of the government’s broader privatisation agenda to reduce fiscal deficits and restructure underperforming state-owned enterprises (SOEs) under the watchful eye of the International Monetary Fund (IMF).
PIACL, Pakistan’s national flag carrier, is currently owned 96% by the federal government via the PIA Holding Company Limited. Despite decades of operations and international reach, the airline has consistently posted losses, largely due to operational inefficiencies, mounting debt, and legacy liabilities.
In its latest fiscal year, PIA operated 268 flights per week, served nearly 4 million passengers across 30 destinations, and continued to run at a loss — raising the urgency to attract private capital and expertise.
Privatisation Push Under IMF Programme
The government is offering between a 51% to 100% stake in PIACL, with an aim to fully transfer operational control to private investors. The move is aligned with the conditions under the country’s $7 billion IMF programme, which mandates the reform or sale of bleeding SOEs to stabilise Pakistan’s fragile public finances.
A previous attempt in 2024 failed after the only bidder, the Blue World City consortium, offered just Rs10 billion for a 60% stake, far below the government’s expected Rs85 billion valuation.
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Renewed Interest from Domestic Investors
This time around, the bid environment appears more competitive. Notably, Fauji Fertilizer Company Limited (FFC) — one of Pakistan’s most prominent and profitable companies — has formally expressed interest in acquiring a stake in PIA. FFC’s entry could lend credibility to the process and encourage other potential investors.
The final list of qualified bidders will be issued after evaluating both the Statements of Qualification (SoQs) and the EoIs submitted today.
Key Terms and Strategic Focus
The government has retained all original terms and conditions from the earlier deadline of June 3, 2025. It extended the submission deadline to June 19, 2025, reportedly to allow more investors to come forward after initial muted interest.
PIA’s privatisation includes its aviation business and select ancillary units. The Privatisation Commission has emphasized that future owners must demonstrate operational capability and financial strength to run a full-service international carrier.
What’s at Stake?
Privatising PIA is not just about reducing fiscal pressure. It is also a litmus test of the government’s seriousness in restructuring loss-making SOEs and reviving investor confidence. It will also test Pakistan’s ability to execute high-stakes economic decisions under external supervision, especially as the IMF programme nears critical review stages.
Industry analysts warn, however, that success will depend not just on selling shares — but on ensuring a clean handover free from political interference, regulatory ambiguity, and unresolved liabilities, including employee pensions, aircraft leases, and tax disputes.
