Archive · 26 Dec 2025
Pakistan Finalizes PIA Privatization, Treasury Gains Minimal
Pakistan sold a big part of its national airline, PIA, for 135 billion PKR.
But most of that money (125 billion PKR) will go back into the airline, and only a small part (10 billion PKR) will go to the government.
Before the sale, the government moved a huge debt (654 billion PKR) from PIA to the public.
Some people think this was not fair because the public will have to pay for the debt, and the sale didn't get much money for the government.
Only three local companies bid for PIA, and no big international airlines joined.
The government says this sale is a big step, but others think it was rushed and not done fairly.
Pakistan finalized the privatization of PIA for PKR 135 billion, with only 7.5% (PKR 10 billion) going to the government.
Over 90% of the sale proceeds (PKR 125 billion) will be reinvested into PIA for modernization and operational improvements.
The government shifted PKR 654 billion in PIA's debt to the public balance sheet before the sale.
Only three domestic bidders participated in the auction, with no major international carriers involved.
The winning consortium, led by Arif Habib Corporation, committed to an additional PKR 80 billion investment over five years.
- Who
- Pakistani government and Arif Habib Corporation-led consortium
- What
- Privatization of Pakistan International Airlines (PIA)
- When
- December 23, 2025
- Where
- Pakistan
- Why
- IMF pressure and fiscal discipline
- Sale Amount
- PKR 135 billion
- Government's Share
- PKR 10 billion (7.5%)
- Reinvestment Amount
- PKR 125 billion (92.5%)
- Additional Investment
- PKR 80 billion over five years
- Shifted Debt
- PKR 654 billion
- Annual Budget Drain
- PKR 35 billion
- Number of Bidders
- 3 (all domestic)
- Date of Sale
- December 23, 2025
