In a significant development for Pakistan’s aviation sector, Advisor on Privatization Muhammad Ali and Information Minister Atta Tarar held a press conference in Islamabad on Wednesday to detail the historic privatization of Pakistan International Airlines (PIA).
Advisor Muhammad Ali clarified that the government is set to gain Rs55 billion from the deal, debunking rumors of a smaller Rs10 billion figure.
He explained that the structure includes Rs10 billion in direct cash, while the remaining Rs45 billion represents government equity.
This move is expected to relieve the national exchequer of a massive financial burden; notably, PIA’s losses had ballooned to Rs700 billion by 2024, with negative equity reaching Rs213 billion as far back as 2015.
Operational Reality and Future Goals
The advisor highlighted the airline’s current struggles to emphasize the necessity of the sale.
Out of 33 total aircraft, only 18 are currently operational.
12 of those 18 operational planes are on lease.
24 aircraft date back to before 2010, with only two added after 2017.
Despite these challenges, Muhammad Ali noted that PIA’s domestic market share remains at 30%, and its international landing routes are its most valuable assets.
The government intends for the fleet to eventually grow to 100 aircraft, restoring the airline’s “lost glory.”
Minister Atta Tarar and Muhammad Ali both emphasized that the process was conducted with absolute transparency, even being broadcast live.
They credited the leadership of Prime Minister Shehbaz Sharif and Field Marshal Asim Munir for navigating this complex 20-year journey to a successful conclusion.
While the Arif Habib Consortium takes the lead, the government will retain a 25% stake in the airline, ensuring a continued national interest in its revival.
https://archive.mmnews.tv/pias-assets-are-they-worth-more-than-the-sale-price/
