KARACHI – The Pakistani government is pressing ahead with its ambitious plan to privatize Pakistan International Airlines (PIA) before the end of the year, according to Muhammad Ali, Chairman of the Privatisation Commission.
In an interview on a private TV, Ali confirmed the government’s resolve to conclude the sale but made a crucial clarification: no governmental guarantees will be extended to prospective buyers. While the International Monetary Fund (IMF) has approved the withdrawal of sales tax on the transaction, other forms of investor assurances are being withheld. Ali emphasized that running airlines is not the mandate of administrations and noted, “Governments change.”
Addressing concerns about the sluggish pace of privatization, the Chairman explained the strategy of starting with smaller, less complex deals, such as the partial transfer of First Women Bank, before moving on to larger divestments like PIA.
Looking ahead, Ali confirmed that the government plans to outsource major infrastructure, with Karachi and Lahore airports each requiring an estimated $1 billion in capital for expansion, which private operators are expected to mobilize. For the struggling gas sector, he stated that structural reforms are essential, adding, “For the sector to move forward, the Sui gas companies will have to be sold.” The Commission is thus targeting key sales across energy and aviation in the coming year.