Archive · 19 Jan 2026
PIA Privatisation Costs Taxpayers Billions, Report Says
Pakistan International Airlines (PIA) was sold to a group of investors in 2025.
The government said they got PKR 135 billion for it, but a report says that's not true.
Most of that money is actually going back into the airline, not to the government.
The government also had to take on PKR 654 billion in debt to make the airline look good for sale.
So, in the end, the government is paying a lot of money to get rid of PIA.
The report also says that the way the deal is set up, banks will make money no matter what, and taxpayers will be left with the bill.
Even if they sell a fancy hotel for $1 billion, it won't be enough to cover all the debt.
The government might end up paying even more in interest before they can make any money from the sale.
PIA was privatised in 2025 to a consortium led by Arif Habib for PKR 135 billion.
Only PKR 10.125 billion of the bid amount will go to the government, with the rest reinvested into the airline.
The government took over PKR 654 billion in liabilities to make PIA 'sellable', resulting in a total cost of PKR 644 billion.
The deal structure guarantees bank profits regardless of PIA's future performance, leaving taxpayers to bear the burden.
Even if the Roosevelt Hotel is sold for $1 billion, there will still be a shortfall of PKR 250 billion to clear the debt.
- Who
- Pakistan International Airlines (PIA) and the Government of Pakistan
- What
- Privatisation of PIA
- When
- 2025
- Where
- Pakistan
- Why
- To halt operational haemorrhaging, but at a high moral and fiscal cost
- Airline
- Pakistan International Airlines (PIA)
- Consortium
- Arif Habib-led consortium
- Bid Amount
- PKR 135 billion
- Government's Share
- PKR 10.125 billion
- Liabilities Taken Over
- PKR 654 billion
- Total Cost to Government
- PKR 644 billion
- Debt Interest Rate
- 12 percent
- Potential Shortfall
- PKR 250 billion