Pakistan International Arlines (PIA) : News / Updates

[ghazi52]

Are you in it?

No, early 1960's.

 

[Fatman17]

This is the core reason why investment into Pakistan is soo low, it is because at evey point the Pakistani Army would need to have their hands greased for corruption and this is unavoidable. No one wants to deal with this when investing and this is why no one comes to Pakistan to invest. The "Fauji" turn up everywhere unfortunately.

Pakistan army has a country and not otherwise

 

[Hussain]

EDITORIAL: Will privatisation of other entities take off after PIA sale?​

Published December 26, 2025
Updated about 7 hours ago


EDITORIAL: A financial extremely sound group, Arif Habib, has won the bid for 75 percent shares of Pakistan International Airlines (PIA), paving the way for greater interest, domestically and internationally, in bidding for other state owned entities on the list of privatisation.

The process was transparent in marked contrast to the attempt to privatise PIA last year with only one bidder, a real estate magnate, taking part in the process who had asked whether land could be given in lieu of payment.

The bid price was 135 billion rupees, a little less than half a billion dollars at the current rupee-dollar exchange rate, which was 35 percent higher than the government’s reference price of 100 billion rupees, with the pledge of the Group to invest an additional 80 billion rupees over the next five years.

The group will have the option of first refusal to purchase the remaining 25 percent shares within the next 90 days though the Group Chairman stated on various channels that Fauji Fertilizer and/or Middle Eastern airlines will be invited to join.

This indicates a sincere desire on the part of the successful bidder, with no previous experience in the airline industry, to benefit from the experience of others and hence must be fully supported.

The successful completion of the process indicates that a pledge made by the Government to the International Monetary Fund (IMF) noted in the December 2025 second review of the Extended Fund Facility documents (staff-level agreement was reached on 15 October 2025) has been met.

It was: “we expect completion of PIA privatisation by end-December 2025. We have opted for a joint venture structure with multiple exit options for the privatisation of the Roosevelt Hotel and are now finalising the hiring of a replacement Financial Advisor for the transaction.”

Arif Habib Group also shared its intent to initially purchase 38 aircrafts and another 27 later, depending on demand. Price of commercial aircrafts vary with narrow bodied Boeing 737 MAX costing around 100 million dollars, Airbus A320 (around 110 million dollars) and Airbus 350 at around 300 to 400 million dollars though reports suggest that net prices maybe far lower due to discounts of around 50 percent and leasing options.

It is unclear whether the Group intends to remit the foreign exchange from within the country or outside — an element that would have an impact on the country’s reserves. Be that as it may, PIA, one of the three white elephants — the other two being Pakistan Steel and Pakistan Railways — requiring hundreds of billions of rupees of annual budgetary injections, at the taxpayers’ expense, to keep it afloat.

Details of monetary or fiscal incentives extended to PIA’s new owners, if any, have not been shared with the general public though one would not be remiss in assuming that they will be shared with the IMF, given that the Fund’s documents relating to the ongoing programme highlight the need to share total investment inflows as well as any incentives extended through decisions taken by the Special Investment Facilitation Council (SIFC).

In this context, it is relevant to note that the PIA management had been accused of charging sales tax but failing to credit to the Treasury, a lapse that is punishable by law, however clearly the new owners are not liable for this lapse.

The intent of the Arif Habib Group to procure or lease not only airplanes but perhaps other items as well to bring the services provided by the national airline at par with other international carriers may require the payment of indirect taxes and one would hope for greater clarity in this regard.

These ambitious investments on the part of the Group Chairman must be appreciated; however, these would be contingent on demand expected to be significant for domestic routes.

However, additional services would need to be provided by the airline to attract foreign passengers which would, in turn, fuel foreign exchange earnings.

Last but not the least, it is a widely known fact that the process of disinvestment or sell-off is often long-drawn and complicated in developing countries in particular but, having said that, it is quite likely that privatisation of other entities on the government list will take off after the PIA sale.

 

[Ali_Baba]

Pakistan army has a country and not otherwise

Yes. Sad but true and the root cause of every single problem Pakistan has..

 

[SoulSpokesman]

In a way it is good that Fauji Foundation is on board. It ensures that the ruling entity of Pakistan would ensure that PIA's operations are not disrupted by the usual suspects- the netas and the babus.

Regards

 

[Michael]

PIA Privatization: Facts vs. Fiction

There is a lot of talk on social media regarding the "cheap" sale of PIA to the Arif Habib (AH) Consortium. Let’s dive into the details of PIA’s actual worth.

In reality, PIA held little value beyond its name and history. Let’s look at the facts objectively:

The 21-Year Loss Streak: PIA has been struggling for decades; its last profitable year was 2004. Since then, it has drained over Rs. 800 billion in taxpayer money. For over twenty years, the government has injected billions—our tax money—to keep a failing organization on life support. In the last decade alone, losses exceeded Rs. 500 billion. No professional entity (whether an MNC or a local company) would survive this without major "surgery." We all know that in such areas what is the behavior of the management. When a business unit consistently underperforms, management must take drastic action to restore profitability. In PIA's case, multiple "surgeries" were attempted with no results. Therefore, privatization became the necessary next step.

The Fleet Reality: Critics are valuing PIA's planes at brand-new prices. However, most of the current fleet consists of aircraft manufactured before 2010. Out of 33 planes, only 19 are operational. Furthermore, 13 of these are on lease, meaning PIA doesn’t even own them. You cannot sell what you do not own.

Valuable Property is NOT Included: A major point of confusion: PIA’s most valuable real estate, including the Roosevelt Hotel in New York and Hotel Scribe in Paris, was NOT part of this deal. These remains the property of the government’s holding company. The sale only included operational assets (flight operations, cargo, catering, and training) and the brand identity.

The Strategic Move by Fauji Fertilizer: There are numerous objections to Fauji Fertilizer’s inclusion in the consortium. Fauji Fertilizer made a calculated move by joining the highest bidder (Arif Habib). This makes them a key beneficiary and brings serious corporate management to the table to revive the airline. Their involvement is also strategic in dealing and navigating the bureaucracy that often hinders progress and sabotage & destroy everything.

Important Points to Note:

• What was sold? A 75% stake for Rs. 135 billion.
• Where does the money go? 92.5% of the bid amount (nearly Rs. 125bn) will be reinvested back into PIA to fix it—it is not simply being pocketed by the government.
• Assets: PIA’s valuable international real estate and properties were NOT part of the deal.
• Infrastructure: Airports remain the property of the Civil Aviation Authority (CAA), not the new owners.
• The Name: The "PIA" brand and identity cannot be changed.
• The Bid: This was the highest bid. Other bidders withdrew because they recognized the massive liabilities and debt associated with the airline.

We, a nation of 250 million, have little right to complain now after years of silence. Current objections suggest we were content funding a failing system with our own taxes. Instead of resisting privatization, we must realize that our hard-earned money was being wasted and thrown into a black hole. It is time for a new approach: private management.

This move is a step toward reviving a carrier that has long been a financial drain. With the Arif Habib Group at the helm, it will be interesting to see how they transform the future of our national airline.

PIA's main value lies in its airline route operating rights; other aspects of its value can be disregarded.

After the privatization of PIA, there is a high probability that they will use a "wet lease" arrangement to expand their fleet. ------ This is the best way to quickly resume operations.

Therefore, we may soon see commercial airliners with multiple logos painted on them appearing in Pakistan.

 

[Fatman17]

In a way it is good that Fauji Foundation is on board. It ensures that the ruling entity of Pakistan would ensure that PIA's operations are not disrupted by the usual suspects- the netas and the babus.

Regards

It's not the government project anymore. Problem will be or can be created by the PIA employees many of them inducted by the political parties esp PPP.
After the privatisation there are fears of retrenchment. PIA is already over employed.

 

[SoulSpokesman]

@Fatman17 sb

Problem will be or can be created by the PIA employees many of them inducted by the political parties esp PPP.

That is where the Fauj comes in. They will neutralise any mischief by surplus employees or their backers in PPP.

Regards

 

[Fatman17]

@Fatman17 sb

Problem will be or can be created by the PIA employees many of them inducted by the political parties esp PPP.

That is where the Fauj comes in. They will neutralise any mischief by surplus employees or their backers in PPP.

Regards

Unlikely

 

[mythbuster]

Straight from the horse's mouth: Per Arif Habib, it was a 'demand' to bring the Fauji Foundation in the purchase of PIA!

To view this content we will need your consent to set third party cookies.
For more detailed information, see our cookies page.

Accept third party cookies

People are getting the idea that fauji insisted on joining..... it's the other way around... it's the other groups who insisted faujis shall put their skin in the game.

 

[SiliconBit (silicon0000)]

People are getting the idea that fauji insisted on joining..... it's the other way around... it's the other groups who insisted faujis shall put their skin in the game.

Their ability to manage both bureaucratic hurdles and political pressure makes their inclusion an absolute necessity. Right approach by bidders.

 

[Bilal]

Straight from the horse's mouth: Per Arif Habib, it was a 'demand' to bring the Fauji Foundation in the purchase of PIA!

To view this content we will need your consent to set third party cookies.
For more detailed information, see our cookies page.

Accept third party cookies

What do you expect him to say? He’s a businessman.

 

[Meengla]

What do you expect him to say? He’s a businessman.

If you are implying Mr. Arif Habib was lying then the same could be applied to anyone: Politicians, media, Generals, Judges... But I don't think Mr. Habib was lying.
What matters here is the stabilizing guarantees of the military to support an extremely competent group of businessmen to turn PIA around.

 

[Bilal]

If you are implying Mr. Arif Habib was lying then the same could be applied to anyone: Politicians, media, Generals, Judges... But I don't think Mr. Habib was lying.
What matters here is the stabilizing guarantees of the military to support an extremely competent group of businessmen to turn PIA around.

He’s being diplomatic. When you don’t see a problem in a country’s investment environment when that you need “stabilizing guarantees of the military” to assure your investment works as intended then I don’t want to continue debating the matter.

 

[SiliconBit (silicon0000)]

He’s being diplomatic. When you don’t see a problem in a country’s investment environment when that you need “stabilizing guarantees of the military” to assure your investment works as intended then I don’t want to continue debating the matter.

Who destroy PIA? Faujis or Political people and babus?