From Runway To ‘Reality TV’: Pakistan Turns Sale Of Loss-Making PIA Into National Broadcast Event

Last Updated:December 04, 2025, 00:08 IST

The privatisation of PIA is a critical condition under the country’s $7 billion International Monetary Fund (IMF) programme

The government is actively aiming to attract serious investment after a previous attempt to offload the carrier failed to secure an attractive offer. (Representational image/AP)

Pakistan has announced that the bidding process for the sale of its chronically loss-making national carrier, Pakistan International Airlines (PIA), will take place on December 23 and will be broadcast live across all media platforms. Prime Minister Shehbaz Sharif personally confirmed the date, emphasising the government’s commitment to “full transparency and merit” throughout the highly anticipated transaction.

The privatisation of PIA is a critical condition under the country’s $7 billion International Monetary Fund (IMF) programme, necessitated by the airline’s massive accumulated debts and persistent operational losses that have severely drained the national exchequer. If successful, the sale, which involves offloading a 51% to 100% stake and management control, will mark Pakistan’s first major privatisation effort in nearly two decades.

The government is actively aiming to attract serious investment after a previous attempt to offload the carrier failed to secure an attractive offer. To facilitate the sale this time, authorities have implemented a comprehensive restructuring plan, including transferring approximately 80% of PIA’s total debt to the state. Additionally, incentives such as scrapping the sales tax on leased aircraft and providing limited protection against past legal and tax claims have been put in place to attract bidders.

Four entities have been pre-qualified to participate in the final bidding round: the Lucky Cement Consortium, Arif Habib Corporation Consortium, Fauji Fertiliser Company Limited, and Airblue Limited. Prime Minister Sharif held a meeting with representatives of all bidding entities, stressing that modernising PIA is vital not only for overseas Pakistanis but also for the growth of Pakistan’s tourism sector. The decision to air the entire bidding process live is a direct measure to counter concerns about cronyism and ensure public confidence in the integrity of the sale.

The successful divestment is a crucial step towards fiscal stability for Pakistan, with the government reportedly targeting Rs 86 billion in privatisation proceeds this year.

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