After decades of financial struggle, repeated government bailouts, and multiple failed attempts at privatisation, Pakistan International Airlines (PIA) has finally been privatized. The federal government has sold the country’s national carrier to the Arif Habib investment group for Rs 135 billion, marking the end of an era for one of Pakistan’s most iconic institutions.

The deal was sealed during a competitive bidding ceremony held in Islamabad, where interest from private players was noticeably stronger than in previous years. The successful bid came after the government’s earlier attempt to offload PIA last year collapsed due to a lack of credible offers, highlighting just how challenging the airline’s situation had become.

The televised event in Islamabad became a duel between the two best candidates. When the price rose, the last moments were:

• Arif Habib Consortium: Final winning bid of PKR 135 billion.
• Lucky Consortium: Withdrew after a final valiant offer of PKR 134 billion.
• Airblue: Exited early in the process with a bid of PKR 26.5 billion.

New investors will have the authority to implement administrative and financial reforms. However, matters related to PIA’s national character, brand, and identity will maintain their protected status. Officials emphasized that the airline’s legacy and public recognition are a priority.

As part of the deal, the state will receive an upfront cash payment of Rs 10.2 billion. The transaction is being described as Pakistan’s first major privatization initiative in more than two decades. Economic experts believe the move could significantly ease the fiscal burden on the government, potentially reducing annual subsidy and operational expenses by nearly Rs 35 billion.

Officials highlighted efforts to improve passenger experience and provide employees with better platforms and opportunities. “Our focus will be to maintain a strong operational structure while enhancing services for travellers,” said Arif Habib Group representatives.

While the sale marks a decisive conclusion to the government’s ownership of PIA, it also raises important questions. Can private ownership succeed where the state failed? Will restructuring, better governance, and commercial discipline restore PIA’s former stature? Only time will tell. However, Pakistan’s national carrier has entered a new chapter, one that could either redefine its legacy or confirm the scale of the challenges ahead.

Credit: Independent News Pakistan (INP)