Final Descent into Privatization: Govt Weighs Sale of Remaining 25% PIA Stake After Rs 135bn Deal. -

Pakistan is moving closer to the full privatization of its national carrier, PIA, marking a historic shift in the country’s aviation landscape. Following the successful sale of a 75% stake to a consortium led by the Arif Habib Group for Rs 135 billion ($482 million) in December 2025, the government is now considering divesting its remaining 25% stake, valued at approximately Rs 45 billion.

The Financial Turnaround

After years of staggering losses, the airline has recorded a significant financial recovery:

2024 Performance: PIA reported its first annual profit in over two decades, totaling Rs 26.2 billion, largely due to the government assuming Rs 671 billion of its legacy debt.
2025 First Half: The airline continued its momentum with a net profit of Rs 6.8 billion for the six months ending June 2025.
Operational Cleanliness: Legacy liabilities have been transferred to PIA Holding Company, allowing the airline to operate with “clean” commercial books.

Global Comeback & Fleet Expansion

With the lifting of safety bans by the UK and EU, PIA is set to reclaim its most lucrative international routes:

London Resumption: Direct flights to London Heathrow are scheduled to resume on March 29, 2026.
Expanded Network: Services to Manchester and Paris are already operational, with plans to increase frequencies to Birmingham and other European destinations.
Fleet Strategy: The new management plans to expand the current fleet of 18 aircraft to at least 25-30 to ensure sustainable network growth.

Strategic Assets Retained

Crucially, the government has clarified that high-value overseas assets, including the Roosevelt Hotel in New York and the Scribe Hotel in Paris, were not part of the deal. These properties remain under government ownership through the holding company for independent development.