PIA privatisation likely to conclude next month as four major firms join race

ISLAMABAD: The Senate’s Standing Committee on Defence was told on Friday that the process to privatise Pakistan International Airlines (PIA) has entered its final stages. Four major companies, namely Arif Habib Limited, Fauji Fertiliser Company, Air Blue and Lucky Group, have shown interest and are part of the bidding process. The transaction is likely to be completed early next month.

The meeting, chaired by Senator Muhammad Talha Mahmood, received a detailed briefing from the Secretary Defence on the progress of the national airline’s privatisation. Officials told the committee that all participating companies have sought some relaxations in the conditions set by the government. However, authorities made it clear that certain aspects of the airline’s identity will remain unchanged.

According to the secretary, the government has firmly decided that the PIA name and national flag will remain intact. Ownership will stay with Pakistani nationals, and no foreign entity or individual will be allowed to acquire a majority stake.

Losses from Europe route suspension

The committee was also briefed on the suspension of PIA’s flights to the United Kingdom and Europe, which dealt a financial and reputational blow to the airline. In 2018, PIA operated 1,420 flights on these routes, generating Rs36 billion in revenue against expenses of Rs39 billion. The following year, 478 flights were operated, bringing in Rs15 billion against Rs13 billion in costs.

The secretary informed members that PIA continued flights to Europe until 2022, but the ban and subsequent suspension led to losses of around Rs13 billion and significantly affected the airline’s goodwill abroad.

Chairman Mahmood urged strict measures to curb the misuse of airline facilities and directed that all free travel privileges be discontinued immediately. He also called for legal action against any unlawful union activities within PIA.

ASF operations and airport security

The panel was further briefed on the operations of the Airports Security Force (ASF). Officials said the ASF currently provides services at 14 operational airports and continues to cover 16 non-operational ones, adding an unnecessary strain on its resources. The force comprises 90 percent male and 10 percent female personnel.

Senator Saleem Mandviwalla proposed upgrading passenger and baggage screening systems to meet modern standards. The committee’s chairman supported this call, suggesting the introduction of a marking system on boarding passes for passengers flagged as suspicious.

He also raised concerns over weak security arrangements at smaller airports, particularly in Peshawar and Balochistan, and called for immediate improvements to ensure passenger safety.

Strategic focus on Chitral

The committee also took up the issue of PIA’s discontinued services to Chitral Airport. Senator Mahmood highlighted Chitral’s strategic significance, noting that the area connects Pakistan to sensitive border regions and could serve as a future trade and travel route to Central Asia through Tajikistan, provided a connecting tunnel is developed.