ISLAMABAD (Web Desk) - Defence Minister Khawaja Asif said on Wednesday that the government was satisfied with the privatisation of Pakistan International Airlines (PIA), describing the Rs135 billion transaction as a milestone with strong symbolic value for the country’s economic and aviation reforms.
Talking to a private news channel, Asif said that the sale marked the first major privatisation in nearly two decades and reflected the government’s resolve to offload loss-making state-owned enterprises.
“Yes, the government is satisfied. This is the biggest transaction in our privatisation process and it has great symbolic value,” he said, recalling that while institutions such as the First Women Bank had also been privatised in the past, none matched the scale of the PIA deal.
A consortium led by Arif Habib Corporation on Tuesday won the auction for a 75pc controlling stake in Pakistan International Airlines Corporation Limited (PIACL) with a bid of Rs135 billion after a competitive, televised bidding process.
The Arif Habib–led group raised its offer from Rs115 billion to Rs135 billion in the final round, narrowly beating the Lucky Cement Limited–led consortium, which increased its bid to Rs134 billion.
The transaction is a key condition of Pakistan’s $7 billion International Monetary Fund (IMF) bailout programme and a central part of the government’s plan to reform or privatise struggling public-sector entities.
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Asif said the PIA sale carried particular significance given the airline’s troubled recent history.
He referred to the 2020 crisis triggered by a statement from then aviation minister claiming hundreds of pilots held dubious licences, which led to bans by European and UK aviation authorities on PIA’s most profitable routes following a fatal crash near Karachi.
The defence minister, who also oversees the aviation ministry, blamed bureaucratic failures for the decline of public institutions, saying politicians were often unfairly held responsible.
“Those responsible for the ruin of public-sector institutions will be held accountable,” he asserted, expressing hope that the PIA privatisation would help restore confidence and professionalism in the national carrier.