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Government to Earn Rs55 Billion from PIA Privatization, Says Adviser Muhammad Ali
Privatization Adviser Muhammad Ali says the national exchequer will receive Rs55 billion from the PIA deal, with private investment expected to modernize the airline and improve services.
MH
by Muhammad Hashir
2025-12-24
Government to Earn Rs55 Billion from PIA Privatization, Says Adviser Muhammad Ali

Prime Minister Shehbaz Sharif’s Adviser on Privatization, Muhammad Ali, has announced that the government will receive a total of Rs55 billion from the privatization of Pakistan International Airlines (PIA). The announcement was made during a press conference held on Wednesday alongside Federal Information Minister Attaullah Tarar.

Muhammad Ali explained that the total valuation of PIA stands at Rs180 billion, with the government holding a 25 percent share worth Rs45 billion. He said that the privatization process aims to allow the private sector to operate PIA more efficiently, while the government focuses on policy-making rather than running businesses.

“The privatization will enable private investment in PIA, leading to the addition of new aircraft and improvements in services,” Muhammad Ali stated. He clarified that if the government’s 25% shares are sold in the future, it will receive Rs45 billion, and the total economic value for the government from the deal will be Rs55 billion.

The Adviser further detailed that 7.5 percent of the bid amount, equivalent to Rs10.125 billion, will go directly to the government, while the remaining 92.5 percent, or Rs124.875 billion, will be invested into PIA itself. This investment will be made in two phases: two-thirds initially and one-third within 12 months after financial transactions are completed. He confirmed that PIA properties are not part of the privatization.

On operational matters, Muhammad Ali said PIA currently flies to 30 destinations and holds designated airline rights in 78 countries, with air service agreements in 97 countries. PIA’s largest asset is its landing rights. The airline owns 33 aircraft, including 16 A320s, 12 Boeing 777s, and 5 ATRs, though only 19 are operational. Its domestic market share is approximately 30 percent.

Addressing misinformation, the Adviser said some parties are falsely claiming that PIA was sold for Rs10 billion, emphasizing that the government will benefit to the tune of Rs55 billion. He added that buyers have been given incentives, including GST exemptions and assurances against new taxes or levies, and will have five years to pay Rs26 billion and other dues to the Federal Board of Revenue.
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