Pakistan’s government is considering divesting its remaining 25% stake in Pakistan International Airlines (PIA), valued at approximately Rs45 billion, within three months after handing over management control to a private consortium led by the Arif Habib Group.
This move follows the successful transfer of 75% operational authority, marking a significant step in the airline’s privatization.
Operational Restructuring and Fleet Status
PIA now operates with a fleet of 18 aircraft, including 12 leased and 6 owned ones under maintenance.
Officials highlight that this size is inadequate for expansion, urging the acquisition of more planes to enhance services. Legacy assets and liabilities have been shifted to the PIA Holding Company, leaving the airline with clean, commercially focused books.
This restructuring has boosted profitability, with PIA reporting Rs26 billion in profits for 2024 and Rs6.8 billion in the first half of 2025.
Service Restoration and Future Prospects
Flights to London are set to resume on March 29, with Paris services twice weekly and Manchester at three flights per week.
Operations to Malaysia continue, while Saudi Arabia routes focus on Hajj and Umrah traffic. The Roosevelt Hotel in New York and Scribe Hotel in Paris were excluded from the deal, remaining under government control for separate commercial strategies.
Officials emphasize that privatization signals confidence to global investors, positioning PIA for competitive growth. A minimum fleet of 25-30 aircraft is needed for sustainability, depending on the new owners’ plans.
This divestment option aims to fully privatize PIA, fostering efficiency and market expansion.