Syed Saif Ul Hassan 
Oct 31, 2025
A Pakistan International Airlines (PIA) plane at Allama Iqbal International Airport in Lahore, Pakistan January 29, 2024. — Reuters
Following the opening bids and facing setbacks several times, the privatisation of the Pakistan International Airlines (PIA) is once again facing significant challenges as potential buyers are unwilling to assume the airline's debt.
The development came to light during a Senate Standing Committee on Privatisation meeting led by Senator Afnan Ullah Khan, where the secretary of the Privatisation Commission, Usman Bajwa, reported that bidders are seeking changes to the transaction framework to avoid covering these debts.
How much is PIA's debt?
PIA's substantial liabilities that aspirants have refused to pay include Rs28 billion owed to the Federal Board of Revenue (FBR) and Rs7 billion to the Civil Aviation Authority (CAA).
To address PIA's financial burdens, the government is said to be planning to use revenues from the sale of the Roosevelt Hotel in New York and another property in Paris, which are expected to generate over Rs500 billion.
The Roosevelt Hotel, a 17-story building, is set to be demolished to make way for a new high-rise development once it receives approval from US authorities.
It was also reported that the commission will appoint a new financial advisor next month to look after the leasing process of the hotel.
Despite these obstacles in place, officials expressed optimism that the PIA privatisation plan is still on track, claiming that efforts are ongoing to enhance the deal's attractiveness for potential investors.
