IHC dismisses two more petitions challenging PIA privatisation

ISLAMABAD: The Islamabad High Court (IHC) has dismissed a petition challenging the ongoing privatisation of Pakistan International Airlines (PIA), affirming the Federal Government’s authority to manage and dispose of state-owned assets.

The petition was filed by the People’s Unity of PIA Employees, a registered Collective Bargaining Agent (CBA), seeking to intervene in PIA’s privatisation process. The petitioner claimed concerns over the restructured airline, which has been separated from non-core assets and legacy debt as part of its debt-lite restructuring.

IHC Justice Khadim Hussain Soomro, in his ruling, noted that privatisation falls under Article 173 of the Constitution, which grants the executive authority to acquire, hold, and dispose of public property. The court noted that judicial intervention is warranted only if there is evidence of illegality, corruption, or arbitrary action.

The judgment cited several precedents, including Hidayat Ullah v. Federation of Pakistan (2022) and Dr. Akhtar Hassan v. Federation of Pakistan (2012), underscoring that challenges to government economic policies must be grounded in demonstrable mala fides or statutory violations.

The IHC also observed that the petitioner’s request amounted to an attempt to obstruct the privatisation process, which is being conducted transparently under statutory provisions. It also highlighted the Supreme Court’s guidance on judicial restraint in economic and commercial matters, noting the importance of specialised commercial courts for such disputes.

The ruling effectively allows the government to continue offering the restructured, debt-lite PIA to potential investors, marking a significant step in the state-owned airline’s privatization journey.

It is notable that the People’s Unity of PIA Employees has filed a total of nine cases against the privatisation of PIA, and with the latest verdict, now five out of those petitions have been dismissed by the courts.

Counsel of Privatisation Commission of Pakistan, Barrister Minaal Tariq, speaking to HUM News said, “Five out of nine constitutional challenges to the Privatisation of PIA have been dismissed by this latest judgement. These decisions are all the more significant as Pakistan embarks on an ambitious and wide-ranging privatisation programme, where legal certainty is essential for investor confidence and for the State’s ability to restructure its state owned enterprises.”

She said that by upholding the Privatisation of PIA and holding that, “this has been conducted strictly in accordance with the mandate of the Federal Government under Article 173 of the Constitution, the judgement of the Islamabad High Court sends a strong signal that the court will protect the economic policy matters of the Federal Government and preserve the integrity of the ongoing reform.”