Islamabad: The government decided to privatize Pakistan International Airlines (PIA) after years of persistent financial losses, estimated at Rs35–75 billion annually, and an accumulated financial burden of approximately Rs650 billion.
According to the Ministry of Finance, PIA posted a net loss of Rs4.6 billion last year, while its losses had surged to Rs104 billion in FY2024. Official documents indicate that the national carrier accumulated Rs400–500 billion in losses over the past decade. Including outstanding debt, liabilities, and pension obligations, the airline’s total financial burden reached nearly Rs650 billion. Following the privatization, these liabilities have been removed from the government’s balance sheet.
In an interview with Energy Update, prominent businessman Arif Habib, head of the consortium that acquired PIA, expressed confidence that the airline would become profitable in its very first year under private ownership.
He said the airline would be operated strictly on commercial principles, with only economically viable routes being maintained. “Our objective is to transform PIA into a sustainable and profitable airline through efficient management and disciplined commercial operations,” he said.
Arif Habib further revealed that payment for 66% of PIA’s shares has already been made, while the remaining 34% will be paid within the next year, in accordance with the agreement. He also assured that no employee will be laid off during the first year following privatization.
He said PIA currently operates a fleet of 19 aircraft, with plans to expand it to 60 aircraft within the next five years. The airline aims to induct five new aircraft this year, followed by five additional aircraft annually. Significant investment will also be made to modernize PIA’s engineering and maintenance facilities in Karachi.
- During the first half of 2025, PIA reported a profit of Rs11.5 billion, marking its first first-half profit in nearly two decades.
