Four firms in PIA privatisation race, process to conclude next month, NA panel told

By Asim Yasin
October 18, 2025
The meeting of the Senate Standing Committee on Defence is seen in progress on October 17, 2025.   — Facebook@Pakistansenate
The meeting of the Senate Standing Committee on Defence is seen in progress on October 17, 2025. — Facebook@Pakistansenate

ISLAMABAD: The Senate Standing Committee on Defence was informed on Friday that four companies namely Arif Habib Limited, Fauji Fertiliser Company (FFC), Air Blue, and Lucky Group had participated in the privatisation process of Pakistan International Airlines (PIA), which is expected to be finalised at the beginning of next month.

The meeting of the standing committee was chaired by Senator Muhammad Talha Mahmood.

During the briefing by the defence secretary on PIA privatisation process, the committee was informed that all the participating companies had requested relaxations in the terms and conditions prescribed by the government.

However, the government has categorically stated that the name of the national airline will not be changed and the national flag will not be removed from the planes, ownership will remain with Pakistani nationals, and no foreign individual or entity will be allowed to participate in the bidding process as majority shareholder.

The committee was also briefed on the closure of PIA operations in the United Kingdom (UK) and Europe.

It was informed that during the year 2018, PIA operated a total of 1,420 flights on these routes, generated revenue of Rs36 billion against an expenditure of Rs39 billion. In 2019, the airline operated 478 flights to the UK and Europe, generated revenue of Rs15 billion with an expenditure of Rs13 billion.

The committee was told that PIA successfully maintained its flight schedule to Europe until 2022. The defence secretary said that, apart from financial losses amounting to Rs13 billion, the suspension of operations to the UK and Europe had also adversely affected PIA’s goodwill and reputation at the international level.

Committee chairman Senator Talha Mahmood recommended strict measures to prevent the misuse of PIA services and directed to immediately discontinue the provision of free air travel privileges.

He further instructed that any unlawful union activities within PIA be dealt with in accordance with the law.

The committee was also briefed on the functions and operations of the Airports Security Force (ASF).

It was informed that 14 operational airports were provided with the services of ASF, whereas other 16 nonoperational airports were also covered by the ASF, which was an extra burden over the force. The current strength of ASF comprises 10 per cent female and 90 per cent male personnel.

Senator Saleem Mandviwalla recommended for the upgradation of the passenger and baggage screening systems at airports.

Senator Talha Mahmood emphasised the adoption of modern technology and directed to introduce a marking system on boarding passes of suspected passengers.

The chairman also drew attention toward the weak security arrangements at smaller airports, particularly in Peshawar and Balochistan, and stressed the need for immediate improvements.

The committee further discussed the issue of non-provision of PIA services at Chitral airport.

The committee chairman underscored the strategic importance of Chitral, which connects Pakistan to sensitive border regions and can potentially provide access to Central Asian countries through Tajikistan if a connecting tunnel was constructed.

He directed the authorities concerned to ensure the immediate resumption of PIA services at Chitral airport and strongly recommended that at least one flight be arranged at the earliest.

He further instructed that a compliance report be submitted to the committee within seven days.

Senator Talha Mahmood also expressed concern over the deteriorated condition of access roads leading to Mastuj, Broghil, Shah Saleem, and Bumburet, noting that these areas hold vital importance for the defence and security of Pakistan.

During the meeting, the chairman highlighted the significance of the defence committee and emphasised its vital role in strengthening the country’s defence institutions.

At the outset, the committee offered fateha for the martyrs of terrorist attack on security forces in Mir Ali.

Senator Talha Mahmood paid rich tribute to the sacrifices rendered by the armed forces personnel and the people of Pakistan for safeguarding the sovereignty of the country.

He strongly condemned the recent cross-border terrorist activities originating from Afghanistan and stated that these hostilities were part of a larger campaign initiated by India.