Pakistan to sell loss-making national airline PIA: Is Asim Munir's ‘firm’ among bidders?

Struggling with financial issues, Pakistan will hold a bidding to sell its debt-ridden national airline, Pakistan International Airlines (PIA), on December 23 in what would be the country’s first major privatisation in almost two decades.

The Pakistani government is looking to sell the state-owned airline, which is running at a loss, as planned under a USD 7 billion programme with the International Monetary Fund (IMF). The authorities tried to put it up for sale last year, but the effort was dropped after no offer met their expectations.

Pakistani Prime Minister Shehbaz Sharif met all corporate groups and company representatives involved in the plan to privatise the national airline, according to a press release shared on X by state broadcaster PTV News.

“PIA’s bidding will take place on December 23, which will be broadcast live on all media,” it quoted him as saying.

The government has been looking to sell between 51 and 100 per cent of the national airline to bring in funds and reform the cash-draining carrier, Dawn said in a report.

Notably, the IMF’s Executive Board is set to meet on December 8 to release the next USD 1.2 billion package, and finishing the PIA bidding process by the end of the year would be required for future payments.

The IMF programme approved in September 2024 aimed to stabilise Pakistan’s economy, then valued at USD 370 billion, during a period of severe financial turmoil due to record inflation, a rapidly falling currency and a growing external deficit.

The government tried to privatise the airline last year but received one offer of PKR 10 billion from a single bidder for a 60 per cent stake, far below the reserve price of PKR 85 billion.

The Privatisation Commission restarted the process in April 2025 and called for expressions of interest for a 51 to 100 per cent stake from local investors and abroad.

Four Pakistani firms have been cleared to take part in the move to privatise the national flag carrier.

A PTI report said Fauji Fertiliser, Habib Rafique, Younus Brothers and Airblue have expressed interest in bidding for a majority share in the national airline.

Fauji Fertiliser comes under the Fauji Foundation. According to an India Today report, Pakistan’s Field Marshal Asim Munir appoints the Quartermaster General (QMG), who sits on the Central Board of Directors of the Fauji Foundation.

The head of the Pakistani Army holds indirect influence over the Fauji Foundation through the military’s institutional control, the report added.

Notably, the airline’s long financial backlog caused by overstaffing and poor management created operational problems, leading the government to push ahead with privatisation.

With inputs from agencies

---

---