The PIA privatisation process has officially restarted, as the government of Pakistan formally announced the relaunch on Thursday, inviting expressions of interest (EOIs) by June 3, 2025. This move aims to attract credible investors and fulfil key IMF reform requirements after a failed attempt last year.
Islamabad – April 25, 2025:
In a significant development for the country’s economic reform agenda, Pakistan has formally initiated the PIA privatisation process once again. The Privatisation Commission has issued a fresh call for EOIs from both local and international investors, offering between 51% and 100% equity in a restructured Pakistan International Airlines (PIA).
The deadline for submitting EOIs is 4:00 pm on Tuesday, June 3, 2025. Interested parties must pay a non-refundable processing fee of $5,000 or Rs1.4 million. For investor groups or consortia, only one member is required to submit the payment. Eligible entities include legally registered companies or corporate bodies operating individually or in partnership.
This renewed PIA privatisation effort comes in response to Pakistan’s agreement with the International Monetary Fund (IMF), which mandates the divestment of loss-making state-owned enterprises as part of a $7 billion loan programme. Reviving and restructuring PIA is considered essential for restoring fiscal discipline and reducing public sector inefficiencies.
Last year’s attempt to privatise PIA failed when the only bid—submitted by Blue World City for a 60% stake at Rs10 billion—fell far short of the government’s valuation of Rs85.03 billion. Following the rejection, the government paused the process and focused on corporate restructuring to enhance investor appeal.
On May 3, 2024, the Securities and Exchange Commission of Pakistan (SECP) approved a major reorganisation under a Scheme of Arrangement (SOA). This split PIA into two entities: the operational airline (PIA) and PIA Holding Company Limited (PIA Holdco). While the airline retained its core services, legacy liabilities and non-core assets were transferred to Holdco, now listed on the Pakistan Stock Exchange.
The reforms have started to bear fruit. In 2024, PIA reported its first net profit in over 20 years—Rs26.2 billion—alongside an operational profit of Rs9.3 billion. Operational stability has also improved. with the airline flying 4 million passengers to 30 destinations and operating around 268 weekly flights. It continues to function as a full-service carrier with supporting arms like engineering, catering, cargo, and ground handling.
To ensure the PIA privatisation process succeeds this time, the Privatisation Commission Board has revised the pre-qualification criteria. These changes aim to attract technically competent and financially robust investors, avoiding speculative bids and boosting market confidence.
The relaunch of PIA privatisation is a pivotal step in Pakistan’s broader. Economic reform roadmap and an opportunity for serious investors to take part in the transformation of the national airline.
