Privatization of PIA to Conclude by October 1
The government has confirmed that the privatization of Pakistan International Airlines (PIA) will not be extended beyond October 1. Secretary of the Privatization Commission, Usman Akhtar Bajwa, assured this during a briefing to the Senate Standing Committee on Privatization on Thursday. Prime Minister Shehbaz Sharif has instructed that the process be completed by the specified date.
Earlier this week, the National Assembly’s Standing Committee on Privatization announced the extension of the privatization deadline to October 1. Senator Muhammad Tallal Badar, chairman of the committee, emphasized the importance of the PIA transaction for Pakistan’s economic future and the overall privatization agenda. He praised the Privatization Commission’s efforts and expressed hope that the transaction would be finalized in the next two months, which could boost competition in the aviation sector.
Badar also criticized the prioritization of political interests over national interests, warning that this could hinder progress. He pointed out that the failure of entities like PIA or Pakistan Steel Mills would negatively impact employee welfare and national interests. Despite current difficulties, he remains confident in PIA’s potential based on its historical success.
Secretary Bajwa highlighted the need for broad stakeholder support for successful privatization. He noted that PIA faces significant financial challenges, with liabilities totaling Rs825 billion against assets of Rs161 billion. Since 2015, the airline has accumulated Rs499 billion in liabilities, with a Rs75 billion loss reported in 2023 alone.
