PIA Privatisation to Begin in Final Quarter of 2025; Jobs of 6,900 Employees to Remain Secure

ISLAMABAD, April 25, 2025 — Pakistan’s federal government has announced that the privatisation of Pakistan International Airlines (PIA) is set to take place in the final quarter of this year. However, officials have assured that the jobs of 6,900 PIA employees will remain protected during the process.

Speaking to the media in an informal briefing, privatisation adviser Muhammad Ali confirmed that the privatisation process will move forward without the involvement of any provincial government or foreign state. He added that although promotional roadshows will be held in the Middle East, there will be no government-to-government deals.

Ali emphasised that privatising PIA will benefit both the airline and the national economy. “The restoration of the London route will significantly enhance the airline’s profitability, making it more attractive to buyers,” he said.

The adviser revealed that PIA has already resumed purchasing engines, making payments, and handling aircraft maintenance independently. Potential buyers could be offered up to an 80% stake in the airline, along with a five-year tax exemption to incentivise investment.

Muhammad Ali also stated that the leading partner of any bidding consortium can be changed if required. “With the government’s recent reforms improving PIA’s financial outlook, we expect higher bidding values,” he noted.

Reassuring concerns about job security, Ali confirmed that the employment of 6,900 existing PIA workers will be safeguarded. Bidders will be granted 60 days for due diligence to thoroughly examine the airline’s financials.

Highlighting lessons learnt from past privatisation efforts, the adviser said new conditions have been added for non-airline bidders, including minimum revenue requirements over the past few years. Bidding companies must show revenue of at least PKR 200 billion over the past two years and PKR 100 billion three years prior, along with a minimum of PKR 30 billion in cash or shares. All financial audits must be conducted by a firm approved by either the State Bank of Pakistan or an internationally recognised body.

Lastly, to facilitate investment, the government has revised the privatisation terms and accepted all investor demands, including the removal of the 18% GST on aircraft purchases and leases.