Pareesa Afreen 
Dec 28, 2025
Economist Atif Mian has said that even though the government has sold some services related to the national airline, it has a very large financial burden in terms of the past.
He pointed out that the balance in the holding company, along with the old net liabilities of around Rs650 billion, has been retained by the state. On calculations, the government is richer by Rs55 billion, with the same amount of old liabilities. Netting out both, there is a balance of loss to the extent of Rs600 billion.
Mian said this is also important. Even at a cost of capital of just 10%, the cost to service this debt will be approximately Rs60 billion each year to the government. “The government will continue to pay the price for its past dysfunctions, whether they privatise or not,” he said.
However, he warned this should not mean the agreement is inconsequential. "This debt will no longer be an obligation of the airline; it will be managed by people who have a greater incentive to make it work well," said Mian.
In response to worries regarding hefty liabilities, Mian suggested authorities to resist the sunk cost fallacy. "Old mistakes shouldn't get in the way of smarter decisions today, just because past debt doesn't vanish overnight," he said.
He further stated that this could subsequently be mitigated by the positive contributions it could make to the exchequer in terms of taxation as well as employment and other economic activities.
