Pareesa Afreen 
Dec 19, 2025
View of a Pakistan International Airlines (PIA) passenger plane, taken through a glass panel, at Islamabad International Airport, Pakistan October 3, 2023. —Reuters
The federal government is set to auction a 75% stake in Pakistan International Airlines, with most of the funds set to be injected back into the ailing airline, according to officials addressing a Senate panel.
Prime Minister's Privatisation Adviser Muhammad Ali told the Senate Standing Committee on Privatisation that 92.5% of the amount realised from the sale would be invested in the PIA for its revival.
The airline would still require additional funding of Rs80 billion even after the privatisation process in order to revive the airline and help its future growth.
“Currently, we are flying 18 planes, and we need new investment to add more planes,” Ali was quoted by Bloomberg. “The reference price has not been finalised,” he added regarding the sale of the stake.
Only the core aviation business of PIA is going to be privatised, while the rest, like the Roosevelt Hotel in New York, will stay with the government and will be managed through joint ventures,” he explained.
Addressing the committee, which is being led by Senator Afnan Ullah Khan and Privatisation Commission Secretary Usman Bajwa said the government will divest up to 100% of shares depending on the market interest. He also highlighted the fact that major obstacles which led to the halt in the previous privatisation deal, which included Rs33 billion of liabilities, have been overcome.
"Tax-related matters, including sales tax, have also been settled," Bajwa said. In addition, resumption of Pakistan International Airlines' flights to the UK and Europe has enhanced the commercial viability of the carrier, and negotiations with potential investors are in the final stages, according to him.
After the privatisation, it was revealed that the PIA requires Rs80 billion for carrying on its operations.
