On July 18, 2025, the National Assembly’s Standing Committee on Defence formally backed the government’s plan to privatise Pakistan International Airlines (PIA). However, the panel attached key conditions—chief among them the preservation of the airline’s national identity and the protection of employee rights.
Chaired by Fateh Ullah Khan, the committee stressed that PIA’s aircraft must continue to carry the Pakistani flag and its iconic logo, maintaining the airline’s symbolism as a source of national pride. It also called for measures to safeguard the rights and livelihoods of existing employees, ensuring fairness throughout the transition.
This support comes on the heels of PIA’s return to international routes, notably the UK and France, after a five-year suspension due to aviation safety concerns. The airline’s revival has been warmly received by the 1.6 million-strong Pakistani diaspora in the UK, who see the resumed service as a boost for trade and connectivity.
Positive sentiment on social media, especially on X (formerly Twitter), reflects renewed public optimism. Many users highlighted that the lifting of the EU and UK bans, coupled with a reported operational profit in 2024, has significantly improved PIA’s appeal to potential investors.
However, the path to privatisation is not without challenges. A previous attempt in 2024 saw a Rs10 billion bid rejected—far below the government’s expectation of Rs85 billion—highlighting investor hesitancy and valuation gaps.
The committee’s endorsement aligns with broader government efforts to address PIA’s massive daily losses of Rs500 million through a transparent and competitive bidding process, set to conclude by the end of 2025. Additionally, officials are weighing options for the Roosevelt Hotel in New York, a key PIA asset, as part of the wider strategy to maximize returns from the privatisation process.
Published in SouthAsianDesk, July 18th, 2025
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