Islamabad: Defence Minister Khawaja Asif stated on Saturday that the Pakistan government committed to PIA profitability as Pakistan International Airlines (PIA) launched its inaugural direct flight to Manchester from Islamabad International Airport. The ceremony marked the end of a five-year suspension imposed in 2020 due to safety concerns. Flights will operate weekly on a Boeing 777, with expansions to Birmingham and London planned soon.
This milestone underscores the strategic importance of aviation connectivity for South Asia. PIA‘s resurgence enhances regional trade links, boosts remittances from the Pakistani diaspora in the UK estimated at USD 3.5 billion annually and supports tourism growth across borders. As Pakistan integrates deeper into South Asian economic corridors, a profitable national carrier could amplify cross-border investments and people-to-people ties, vital amid global supply chain shifts.
Resumption of UK Flights Signals PIA Privatization Profit 2025 Momentum
The flight PK 774 departed carrying 300 passengers. PIA secured Third Country Operator approval from the UK Civil Aviation Authority in September 2025, following Pakistan’s removal from the UK’s Air Safety List in July 2025. This paved the way for operations after the European Union Aviation Safety Agency (EASA) lifted its ban on PIA in November 2024.
Asif highlighted diplomatic efforts that restored international confidence. “After a long and difficult delay of five years, today the resumption of flights from Islamabad to Manchester is a feat we have achieved through our hard work and determination,” he said at the event. He credited restructuring in pilot training, licensing, and maintenance for meeting global standards.
PIA’s official announcement confirmed the route’s weekly frequency, operated by wide-body aircraft to cater to high demand from the UK’s 1.5 million-strong Pakistani community. This aligns with the Govt PIA turnaround plan, which emphasises route expansion to high-yield markets. In 2024, PIA served 20 international destinations, including Jeddah and Dubai, generating 73% of its passenger revenue from abroad.
The UK resumption directly ties to PIA privatization profit 2025 goals. Restored access to lucrative European slots, PIA holds 10 pairs at London Heathrow could add USD 50 million in annual revenue, per industry estimates. Officials note that four international conglomerates are in due diligence for a 51-100% stake sale, with bidding set for November 2025.
Govt PIA Turnaround Plan Delivers Record Profits
The Pakistan government committed to PIA profitability through aggressive reforms, yielding tangible results. In 2024, PIA posted a net profit of PKR 26.2 billion and an operational profit of PKR 9.3 billion its first black ink since 2003. This represented a 12% operational margin, matching global benchmarks.
For the first half of 2025, PIA reported a pre-tax profit of PKR 11.5 billion, the airline’s strongest half-year performance in two decades. Revenue reached USD 664 million in 2024, driven by a 19% domestic market share and robust international demand. Passenger numbers hit 21 million last year, with projections for 57 million by 2029 amid a 6.2% compound annual growth rate in Pakistan’s aviation sector.
Debt Restructuring Fuels Financial Recovery
Central to the Govt PIA turnaround plan was a comprehensive debt overhaul. Pre-restructuring liabilities stood at PKR 864 billion as of April 2024. By December 2024, these dropped to PKR 190 billion after transferring PKR 654 billion, including PKR 480 billion in debt and PKR 194 billion in employee liabilities to PIA Holding Company Limited.
Net equity improved to PKR 3.554 billion, with total assets at PKR 187.288 billion. This debt-lite structure enabled positive EBITDA and EBITDAR in 2024, positioning PIA as an attractive privatisation target. The government provided net equity support and indemnities for contingent liabilities, ensuring a clean slate for investors.
Operational tweaks further bolstered gains. PIA simplified its fleet to 34 aircraft, A320s, B777s, and ATRs enhancing efficiency. Domestic routes like Karachi-Islamabad carried 277,000 passengers in 2024, while international hubs like Jeddah handled 836,176. Cost controls, including a one-year employee retention cap post-privatisation, aim to sustain margins.
Prime Minister Muhammad Shehbaz Sharif hailed the 2024 turnaround as “historic,” congratulating Aviation Minister Khawaja Asif and his team. In April 2025, he chaired a review of the privatisation process, underscoring the government’s resolve.
Privatisation Drive Targets November 2025 Culmination
The PIA privatization profit 2025 initiative launched with an Expression of Interest in April 2025. Pre-qualified bidders accessed a virtual data room for due diligence in June-July, leading to share purchase agreements in September. The Ministry of Finance confirmed four firms, international aviation giants are advancing, with the sale expected by November’s end.
This aligns with broader state-owned enterprise reforms under the USD 7 billion IMF programme. PIA’s carved-out non-core assets, valued at PKR 20 billion, will fund further aviation investments. Post-sale, the government retains minority stakes but grants full operational autonomy to buyers.
Analysts project PIA’s market share rising to over 30% with private capital, fuelling fleet modernisation and new routes like Baku (launched April 2025) and potential US services. Tax benefits from historic losses will shelter future earnings, enhancing long-term viability.
Background: From Crisis to Confidence
PIA’s woes trace to a 2020 crash near Karachi, killing 97, which exposed licensing irregularities and triggered EASA and UK bans. Annual losses peaked at PKR 42 billion in 2020. The government responded with the Strategic Business Plan 2018-22, later updated, focusing on network growth and cost rationalisation.
By 2024, enhanced safety protocols including rigorous pilot recertification restored EASA trust. The UK ban lift followed similar validations, with British High Commission officials aiding the process, as noted by Asif: “Their cooperation highlights the strong friendship between the two countries.”
What’s Next: Route Expansions and Investor Inflows
PIA plans frequency increases on UK routes within months, alongside Paris and potential New York services. Privatisation proceeds estimated at PKR 50-100 billion will recapitalise the airline, targeting 97 air service agreements for broader reach.
The Pakistan government committed to PIA profitability remains the linchpin, transforming a fiscal drain into an economic asset and fortifying South Asia’s aviation landscape.
Published in SouthAsianDesk, October 25th, 2025
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