Pakistan International Airlines (PIA) has been officially privatised after 75 per cent of its shares were sold for Rs135 billion (around $482 million) to a consortium led by Arif Habib Corporation.
The transaction was completed through a transparent auction process on 23 December 2025, during which three bids were received, starting from Rs115 billion.
The government says the privatisation is aimed at reviving the loss-making national carrier and reducing its heavy financial burden. However, opposition parties have criticised the deal, alleging that PIA was sold at a price far below its actual value.
What was included in the sale
The privatisation involved the transfer of PIA’s core airline operations to the private sector. These include:
Flight operations and a fleet of 31 aircraft, comprising Boeing 777s, Airbus A320s and ATR planes
Domestic and international routes, airport slots and the PIA brand
Selected operational assets and workforce arrangements
Before the sale, the government transferred PIA’s outstanding liabilities — estimated at around Rs785 billion — to a separate holding company. This step ensured that the buyer acquired only the operational airline, free from historic debt.
Assets excluded from privatisation
Several high-value non-operational assets were deliberately excluded from the sale and remain under government ownership. These include:
Roosevelt Hotel, New York, valued at approximately $1 billion
Sofitel Paris Scribe Hotel, along with other international properties
PIA-owned land and buildings in Karachi, Islamabad and other cities
Non-operational vehicles and unused properties
These assets were moved to a government holding company to avoid burdening investors with unrelated properties and to prevent political controversy over their sale.
Claims over aircraft value
Opposition parties, including PTI and PPP leaders, have claimed that the airline was sold cheaply, arguing that a single Boeing 777 aircraft is worth around $330 million.
Aviation experts say this comparison is misleading. While a new Boeing 777 had a list price of over $330 million, PIA’s aircraft are between 10 and 20 years old. The market value of used Boeing 777 aircraft is estimated at $50–100 million per plane, depending on condition and demand.
Industry analysts estimate the resale value of PIA’s current fleet at between $300 million and $500 million, not at new aircraft prices.
Overall valuation
Analysts believe PIA’s total value — including routes and brand — could range between $700 million and $1 billion if all properties were included. However, due to accumulated losses, ageing aircraft and the separation of valuable real estate, the final sale price was lower.
Future of Roosevelt Hotel
The Roosevelt Hotel was not part of the privatisation and remains under government ownership. Officials say it may be leased or developed through a public-private partnership.
The hotel has remained closed since 2019, and its refurbishment is expected to cost around $220 million. The government estimates it could generate annual revenue of $50–100 million once operational.
