Business Desk 
Nov 18, 2025
A Pakistan International Airlines (PIA) plane at Allama Iqbal International Airport in Lahore, Pakistan January 29, 2024. — Reuters
The government is reportedly making efforts to privatise the Pakistan International Airlines (PIA) by the end of 2025, but will not offer any guarantees to prospective buyers.
Speaking on a local news channel, Privatisation Commission Chairman Muhammad Ali on Monday confirmed that the International Monetary Fund (IMF) has approved the removal of sales tax on the PIA transaction.
However, no other investor assurances will be provided. “Governments change, and running airlines or businesses is not the mandate of provincial administrations,” Ali remarked.
Addressing concerns regarding slow privatisation, he said the process started with smaller, simpler transactions, such as the partial divestment of First Women Bank, before moving to larger entities like PIA.
He further said that Government-to-Government (G2G) deals often result in a disadvantage to Pakistan because of reasons such as governance issues, corruption, and economic vulnerabilities.
“Major economic and geostrategic powers gain leverage in G2G deals when the other side lacks bargaining strength,” he said, calling for competitive and transparent privatisation processes to protect national interests.
Ali also pointed out unresolved issues in other sectors. The government has yet to decide whether K-Electric's transfer of shares should be cleared by NEPRA or federal authorities. He said the sale of K-Electric suffered due to poor due diligence.
Looking ahead, it intends to privatise Islamabad Electric Supply Company (IESCO), Faisalabad Electric Supply Company (FESCO), and Gujranwala Electric Power Company (GEPCO) next year, with a possible adoption of the Turkish model wherein private operators are allowed to operate the utilities on concessional terms for a long period.
