The Federal Minister for Aviation, Khawaja Asif, has announced that the privatisation process of Pakistan International Airlines (PIA) will be completed by the end of October.

Speaking during a National Assembly session, Asif emphasised the urgent need for privatisation, citing the airline’s heavy debt burden of Rs. 800 billion.

The minister responded to a calling attention notice regarding the prolonged closure of Hyderabad airport for commercial flights, explaining that reopening PIA operations on this route is not financially feasible due to the airline’s mounting debt.

“Routes that are not financially viable cannot be operated,” he added.

Asif also noted that the government has no objection to private airlines operating from Hyderabad airport, indicating potential opportunities for the private sector.

Meanwhile, Deputy Prime Minister Mohammad Ishaq Dar addressed the ongoing efforts to revive PIA flights to the United Kingdom, stating that significant steps had been taken, including changes to aviation laws to meet UK requirements.

Deputy PM Dar also confirmed that both the privatisation of PIA and the outsourcing of Islamabad International Airport were moving forward on a fast track, with hopes of completion by early next month.

PIA buyers seek investment protection

Local prospective buyers of Pakistan International Airlines (PIA) have demanded protection that is currently available to foreign investors under an Act of parliament and have also sought complete exemption from taxes applicable to air travel, fuel and the lease of aircraft.

Privatisation Commission sources told The Express Tribune that some of the shortlisted parties had placed their demands before the government during the ongoing PIA due diligence process.

They said that the demands along with their refusal to accept performance benchmarks were making it harder to smoothly press ahead with the privatisation transaction.

The demands of bidders are in conflict with an understanding reached with the International Monetary Fund (IMF) that bars Islamabad from giving any special treatment to any segment of investors, according to officials of the finance ministry.

The government has shortlisted Airblue, Arif Habib Corporation, Blue World City, Fly Jinnah, Pak Ethanol (Pvt) Consortium and YB Holdings Consortium for the privatisation of PIA.

It had initially planned to privatise the airline by June-July 2024 but later extended the deadline to October 1.