Govt targets PIA privatisation in 90 days

ISLAMABAD: The federal government is aiming to finalise the privatisation of its loss-making national carrier, Pakistan International Airlines (PIA), within next two to three months, while expressions of interest (EOIs) for the iconic Roosevelt Hotel in New York will be invited in August.

Financial advisor for the Roosevelt Hotel is finalising the transaction structure, while the PIA process is entering its advanced stages. So far, five parties have submitted the EOIs for the airline, with four cleared by the scrutiny committee to proceed to due diligence. These shortlisted bidders were granted access to PIA’s financial accounts and operational data from Tuesday.

Privatisation Commission Secretary Usman Bajwa briefed the National Assembly’s Standing Committee on Privatisation here, which was chaired by MNA Dr Farooq Sattar.

The government aims to complete PIA’s privatisation by the final quarter of 2025, but Bajwa stressed that no decision would be made until investors are fully satisfied. “The winning bidder will be required to expand PIA’s fleet from the current 19 aircraft to at least 45,” he said.

The chairman of the panel and its members emphasised job security for PIA employees, calling for a three-to-five-year employment guarantee. “The wellbeing of the employees must remain a priority,” he said.

Bajwa reassured lawmakers that employee protection is being factored into the privatisation deal, noting that the airline’s workforce has already been rationalised from 11,000 to 6,000.

Bajwa revealed that Pakistan’s leading business groups have expressed keen interest in the airline, as they have the capital to revamp operations. “We also invited regional carriers to participate in the bidding,” he said.

PIA’s CEO informed the committee that the airline has resumed flights to France, and Manchester-bound services are also expected to return soon. “PIA’s operational performance has improved considerably compared to last year,” he claimed.

The committee also took up the issue of Pakistan Postal Life Insurance, which is awaiting Rs6 billion in claim payments. Finance Ministry officials said Rs3 billion is already available with the ministry for the postal life insurance payments. Senator Sehar Kamran and others insisted the funds must not be diverted to Finance Ministry, saying, “This is not government money — it belongs to pensioners and policyholders.”

Dr Farooq Sattar also demanded that abandoned Bengali evacuee properties be auctioned off. “Some are on rent through private arrangements, and the Ministry of Finance is just collecting rent happily,” he said, urging to write to the government for their sale.