Privatisation of PIA to restore flag-carrier's lost strength and efficiency, says PM's adviser 

Islamabad (Web Desk): Prime Minister’s Adviser on Privatisation Muhammad Ali on Wednesday said, Pakistan International Airlines (PIA) is set on a path to regain its lost stature after the privatisation, saying that the move is aimed at strengthening, not diminishing the national carrier.

Addressing a press conference alongside Federal Information Minister Atta Tarar, he rejected the criticism, stating that the process was intended to restore efficiency and operational capacity rather than strike at national pride.

Ali rejected social media claims that PIA was sold below the value of its aircraft, describing such statements as misleading and disconnected from the actual privatisation facts.

He highlighted the airline’s dramatic reduction in operational capacity, noting that PIA, which once managed a fleet of about 50 planes, now has only 17 to 19 aircraft actively flying, with another 12 leased.

The adviser’s remarks followed the announcement that a consortium led by Arif Habib Corporation had emerged as the highest bidder for a 75% stake in PIA, offering Rs135 billion. Authorities hailed the transaction as a historic moment for the national airline.

Muhammad Ali emphasized that PIA serves nearly four million passengers each year and described the airline’s landing rights and international routes as its most valuable assets.

He reflected on the carrier’s former reputation and expressed optimism that privatisation would gradually help PIA regain its operational strength and industry standing.

Clarifying financial details, the PM’s aid addressed claims that the government would receive only Rs10 billion from the sale.

He explained that the deal includes 7.5% in cash and 25% in equity, translating to Rs10 billion and Rs45 billion, respectively, meaning the government will ultimately receive Rs55 billion from the privatisation, while Rs125 billion will be reinvested into the airline.

“PIA’s privatisation has been completed successfully, and the process was fully transparent for the nation to witness,” he said.

The PM’s adviser also reflected on the airline’s decade-long financial struggles, noting that PIA’s performance had sharply declined since 2009, leading to cumulative losses of Rs500 billion over the past ten years.

It is pertinent to mention that the Arif Habib-led consortium officially clinched majority ownership of PIA on Tuesday by submitting the top bid of Rs135 billion, bringing to a close a significant chapter in the national carrier’s history.