PIA dissolution bill approved amid privatisation debate in NA

ISLAMABAD: The National Assembly on Thursday approved the Pakistan International Airlines Corporation (Dissolution) Bill 2026, following a heated debate over the airline’s privatisation, accumulated losses and future restructuring framework.

The bill was presented amid concerns from opposition members regarding the transparency and outcome of the bidding process, while the government defended the plan as part of broader economic reforms aimed at reducing the burden of loss-making state-owned enterprises.

Questions raised over privatisation structure and valuation

Speaking in the House, former minister Naveed Qamar questioned the status of the privatisation process, asking the government to clarify what had transpired during the bidding exercise.

Minister of State for Finance Muhammad Ali informed lawmakers that PIA had incurred losses amounting to Rs500b over the past 15 years.

He said that under the privatisation plan, 75pc of the airline’s shares had been auctioned, while there was also an option to sell the remaining 25pc to the private sector.

He further stated that the airline had been valued at Rs180b during the auction process.

Reform plan, investment and safeguards for employees

Muhammad Ali added that Rs125b would be allocated for the improvement and restructuring of the national carrier following the transaction.

He also assured the House that the new management would be bound not to lay off employees for at least one year after assuming control.

Following deliberations, the House approved the Pakistan International Airlines Corporation Dissolution Bill 2026, paving the way for the proposed restructuring of the national flag carrier.