a person sitting in a chair with a book on the back of the seat

Pakistan has completed a long-delayed and politically contentious privatization of its national carrier, Pakistan International Airlines (PIA), marking a major shift in how the loss-making airline will be owned and operated going forward. Can PIA move from pariah to profit?

Pakistan Completes Privatization Of Pakistan International Airlines

In late December 2025, the Pakistani government sold a 75% controlling stake in Pakistan International Airlines to a private investor consortium led by the Arif Habib Corporation. The winning bid of 135 billion Pakistani rupees, roughly $480 million, exceeded the government’s minimum reference price and concluded a process that had stalled repeatedly over the last decade.

The privatization was conducted through a public auction in Islamabad and broadcast live, an approach officials said was intended to demonstrate transparency after earlier failed attempts. Two other bidders participated but were ultimately outbid by the Arif Habib–led group. The government will retain a 25% minority stake in the airline once the transaction is finalized.

The sale is a key element of Pakistan’s broader economic reform program tied to its agreement with the International Monetary Fund (IMF). Under the IMF bailout, the government committed to reducing losses from state-owned enterprises, many of which have required repeated taxpayer bailouts. PIA has been one of the most financially burdensome, posting losses for decades due to overstaffing, aging aircraft, political interference, and inconsistent management, though it recently posted its first profit in years.

Once considered one of Asia’s better airlines, PIA’s reputation deteriorated sharply over time. Safety concerns culminated in bans from European Union, UK, and US airspace earlier this decade, further shrinking revenue and network reach. While those restrictions were later lifted following regulatory reforms, the airline continued to struggle with weak finances and limited competitiveness.

One Mile At A Time and I flew PIA in business class nearly a decade ago…you can read my review here. As far as I know, the same plane and cabin are still operating!

Under the terms of the sale, the new consortium will assume operational control after regulatory approvals are completed, with the transition expected in early 2026. Government officials have indicated that part of the purchase price will be reinvested into the airline, though detailed plans for fleet renewal, route strategy, or staffing changes have not yet been made public (though the fleet size is expected to double. Currently, the carrier has 33 aircraft in its fleet, but only 18 aircraft are operational. There are plans for up to 65 aircraft).

The consortium itself brings together investors from sectors including finance, manufacturing, education, and real estate, rather than aviation. Officials have said private management will be free to restructure the airline, improve efficiency, and pursue partnerships that were politically difficult under state ownership.

The privatization has sparked protests from labor unions and opposition parties, who argue the airline was sold too cheaply and fear job losses. Supporters counter that continued public ownership was no longer sustainable and that privatization was the only realistic path forward.

CONCLUSION

With Pakistan International Airlines now largely in private hands, the government has shed one of its most persistent financial liabilities. The open question, however, remains unresolved: how will the new owners succeed in making money where PIA has historically failed to do so, in an airline that has lost money for most of its modern existence? How much government interference will continue in the new era?

In any case, I hope to fly PIA again and visit Pakistan in the years ahead.