PIA Privatization: Govt Receives 55 Billion | Fleet & Loss Details

Wednesday, 24 December 2025 | Web Desk

The federal government will receive approximately PKR 55 billion from the privatization of Pakistan International Airlines (PIA). According to the agreement, PKR 10 billion will be in cash, while PKR 45 billion will be in the form of government equity.

The details were shared by Advisor to the Prime Minister on Privatization, Muhammad Ali, during a joint press conference with Federal Minister for Information, Attaullah Tarar, on Wednesday.

The government will retain a 25% shareholding in PIA, valued at PKR 45 billion.

Key Leadership Acknowledged
During the briefing, Federal Minister for Information Attaullah Tarar highlighted the crucial leadership role in the process. “The robust support and guidance of Field Marshal Syed Asim Munir were integral to the privatization of PIA,” he stated.

Tarar also extended thanks to former Finance Minister Miftah Ismail for his appreciation of the transparent privatization process.

Restoring Past Glory
Advisor Muhammad Ali acknowledged that the national carrier had suffered significantly due to past mistakes, leading to its deteriorated condition. However, he expressed confidence that privatization would pave the way for its gradual recovery.

“Past errors have badly affected the national airline,” he said. “But now, with privatization, there is hope that its past glory will be restored step by step.” He added that the new owners are expected to start operating the airline from April.

Current Fleet and Operations
Mr. Ali revealed concerning details about the airline’s fleet. “Only two of PIA’s aircraft were bought after 2017,” he stated. The airline currently operates a fleet of 33 aircraft, with 20 owned and 13 leased. Notably, 24 of these aircraft were received before 2010.

Despite these challenges, PIA holds a 30% share of the domestic market and operates 240 round-trip flights weekly. Its international operations are primarily focused on the Middle East.

Financial Burden and Relief
The advisor highlighted the airline’s staggering financial losses over the years. PIA’s negative equity stood at PKR 213 billion in 2015, and its accumulated losses have now ballooned to approximately PKR 700 billion as of 2024. The airline has been loss-making every year since 2015.

Pakistan’s Auto Market Growth in 2025

“This privatization will bring PKR 55 billion to the government,” Muhammad Ali explained. “More importantly, it will relieve the national exchequer from the immense burden of covering these continuous losses.”

He clarified PIA’s market position, stating, “PIA is not a global airline; it is a regional carrier.”

Employee Base
The national airline currently employs around 6,700 people. The new buyer, as per the agreement, will sustain the current PIA employees.